It is our pleasure to share with you this comprehensive report on Usiminas operations for 2018 with you. Our purpose is to clearly show you our accomplishments in the extremely complex scenario we have been exposed to. After a critical phase, we have worked in order to obtain our current results which have enabled us to make consistent plans for the future of our company.
We have accomplished many important things in all segments in which we operate, including the consolidation of a positive EBITDA of BRL 2.2 billion, the increase in the value of our shares, the reopening of production plants for operation, the creation of jobs, and important work in health, education and environmental areas.
Led by our board of executive officers and the Group of 10, we leveraged the integrated use of resources, adopted strong strategies and improved our corporate governance practices, as well as reviewed our rules and internal procedures.
As to our external work, after we have reached excellence in managing healthcare structures in the cities of Ipatinga and Itabira, State of Minas Gerais, through Fundação Francisco Xavier, our social institution, we took on management of Hospital de Cubatão (in the State of São Paulo), in which we will invest up to BRL 9 million.
Our accomplishments make us proud and reflect the determination of our team. Last, but not least, I must mention our program “Caminhos do Vale,” which is a program to restore rural roads using slag from our steel production and to recover headwaters. More than 10 cities adhered to our program in 2017 - 36 cities are currently part of the program - which has been granted the international Steelie Award by the World Steel Association under Sustainability Excellence category.
We have faced many challenges and reached many accomplishments thanks to our teams' dedication, ability and the power to overcome obstacles of our team. I also would like to show our appreciation for the support from our shareholders, clients, suppliers and communities, which maintain and justify our existence. If many believe that 2017 was a year to forget, we believe that 2017 was a year to remember.
Hope you enjoy your reading.
Sergio Leite de Andrade - CEO
Hand safety program awarded by the
World Steel Association
at the Marcio Cunha Hospital Rehabilitation Center.
used in the steel making
process is recirculated on
Usiminas steel plants.
We are continuously improving our customer service in order to expand our business opportunities. For this reason, we provide a distinguished and technological line of products.
The integration of our products and services offers unique and competitive solutions to several key-economy market segments, such as:
A Usiminas has two steel mills, in Ipatinga, in the Vale do Aço (MG) region, and in Cubatão in the Baixada Santista (SP) region. The integration of the mills allows us to offer the market a diversified portfolio of flat steels, in particular products of high technological content. The Ipatinga plant also includes Unigal which makes hot dip galvanized steel. Find out more at usiminas.com.
The iron ore mines produce pellet feed, sinter feed and granulates for Usiminas’ own use and for sale at home and abroad. Investments in the production line have led to gains in scale and quality. Find out more at usiminas.com/mineracao.
A modern steel processing infrastructure transforms Usiminas products into rolls, blanks, pipes, welded assemblies, profiles, structures, metal disks, etc. These parts are made to order for the market and delivered to customers through an efficient logistics system. Find out more at usiminas.com/solucoes.
Manufacturer of capital goods for heavy industry, each of its projects bears the stamp of quality, technical rigor and credibility. It operates in the segments of industrial equipment, assemblies, railcars and foundry castings, bridges, structures and blanks. Find out more at usiminas.com/mecanica.
Usiminas values its employees and considers them its active agents who are committed to productivity and quality. We believe we need qualified and motivated people in order to build positive results. After all, our people are responsible for production, sales and delivery, for example. Investments in professional training and recycling prove the ongoing commitment to the qualification and development of its team.
more than 3x the Brazilian national average.
in the Trilha da Liderança
(Leading path program).
were assessed in 2017.
In order to have highly qualified leaders who may improve our results and permanently outperform them, we have invested in a cutting-edge program applicable to all of our leaders. Our Leadership Path program was offered to 382 leaders, including Vice-presidents, Directors, General Managers, Managers and Coordinators. In a partnership with Fundação Dom Cabral (FDC), these leaders had the opportunity to discuss relevant matters for their current and future work.
|Number of employees|
|Between 30 and 50||8.937|
More than a guideline, security is a value for Usiminas. The company develops a wide range of actions aimed at creating a safety culture in its units, while preserving the well-being of its employees. Usiminas also offers to its employees programs and benefits related to the prevention of diseases and health treatments.
In addition to training required by law and regulation, we have a strategic plan for long-term improvement and our own tools to promote permanent awareness of our own and outsourced employees, such as the Safe Time - a program in which leaders go through our operating areas in order to encourage safe behavior - and the Golden Rules - which refer to the rules to be followed at greater risks tasks, including the Right of Refusal, which ensures employees that they can interrupt any activities whose risks are not under control. In 2017, Usiminas has registered a 0,44 accident frequency rate.
Hand safety program awarded
by the World Steel Association,
in the Safety Excellence Category
Safety Awareness Center.
and 0 fatalities.
Usisaúde is the health plan operator that serves Usiminas employees, their families and the regions where the company is located. To offer differentiated health plans, with quality assistance, while remaining competitive and sustainable, Usisaúde innovates in services, expansion of its various communication channels and growth strategies. In recent years, the operator has restructured areas, hired personnel, implemented new technologies, guidelines and processes, expanded access to services and gained new accesses, mainly in the market portfolio.
at the dentistry center.
in the Colégio São Francisco Xavier.
of the Hospital Márcio Cunha.
The relationship with the communities where it operates is a constant focus of Usiminas. The company invests in the development of the regions through its own projects or partnerships with non-governmental organizations and local governments. In 2017, Instituto Cultural Usiminas invested R$ 6,3 million in different projects. The company's sponsorship policy, planned and executed by the Institute, favors projects that promote inclusion, training and human development.
In addition, Usiminas works with the communities through the Fundação São Francisco Xavier, a philanthropic institution under private law, recognized by the Ministry of Social Security as a Benefit Entity for Social Assistance. Currently, it is composed of five units: the Hospital Márcio Cunha, the São Francisco Xavier School, the Usisaúde plan operator, the Integrated Dentistry Center and the Occupational Health and Safety, Occupational Health and Environment Service. The Foundation is also responsible for the management of the Carlos Chagas Municipal Hospital, in Itabira (MG), and the Cubatão Municipal Hospital, in Baixada Santista (SP).
Usiminas uses specific laws to support and fund initiatives in Baixada Santista,
Vale do Aço and in the Minas Gerais State Middle West.
Instituto Cultural Usiminas shows.
sponsored in Minas Gerais and São Paulo.
to the Hospital Marcio Cunha
We are committed to continuously improve our environmental performance, rationally use natural resources, and manage the impact of our operations to the environment. We believe that innovation and sustainability are essential to ensure that we continue to do business and stay competitive. From this perspective, we make investments to find solutions so that our industrial operations are environmentally sustainable, as well as take actions to pursue social equity and improve the quality of life of our surrounding communities.
We have a modern Environmental Control System, which was implemented in 1996 when we became the first steel company in Brazil and the second in the world to be granted the ISO 14001 certification, and which allows us to effectively manage the impacts of our operations and continuously improve our procedures.
The environmental certificates and green seals we have been granted the throughout our history, such as RoHS and ELV European directives, which are world references, prove and reaffirm our commitment to economic development in harmony with the environment.
Was Usiminas' investment in engineering, maintenance and process
improvement, education and resource management aimed at preventing and
minimize the environmental impacts of the company.
recycled materials reused.
of different species were cultivated
within the Green Areas program.
by the Caminhos do Vale program.
Innovation is in the Usiminas' DNA. Since its foundation, the company has in the technological value of its products a market differential. Usiminas has a Research & Development (R&D) Center in Ipatinga which focuses on the generation, control and application of scientific and technological knowledge that represent competitive advantages to us.
The company applies such knowledge especially in the following activities: improvement of industrial procedures, cost reduction, development of new products, steel application engineering, and environment protection.
Click here to see the description of the products developed in 2017 and that are now part of Usiminas’ product portfolio.
Para dispor de uma liderança altamente qualificada, que possa alavancar os resultados e superá-los permanentemente, a empresa apostou em programa de ponta para toda a sua liderança. O Trilha da Liderança vem sendo oferecida para 382 líderes, entre eles, vice-presidentes, diretores, gerentes gerais, gerentes e coordenadores de todas as empresas Usiminas.
O programa é desenvolvido em parceria com a Fundação Dom Cabral – uma das maiores instituições de educação executiva do mercado global – e tem entre seus principais objetivos desenvolver as lideranças da Usiminas para enfrentar os desafios impostos pelos ambientes internos e externos, marcado por transformações contínuas, e posicionar a empresa como uma organização empresarial cada vez mais competitiva e inovadora. Iniciado em 2017, a ação está prevista para durar três anos.
At first, the group is similar to a soccer team, more precisely their concentration before an important championship: everyone working together to reach the same goals and purposes. But this project actually refers to an innovative management model that has been giving us many positive results.
G10 was created in 2010 by our President and carries strong liability: define bold and viable actions plans involving all of our areas, including all three forces that move us: the Brazilian, Italian-Argentine and Japanese communities. Instead of importing a consultant or going after consulting with companies in the market, we invested in the potential of our internal teams, and found professional strength to actually transform the company. Our idea was that the group should be diversified and able to drive our internal teams - greatly focused on results given that we were going through complex times.
Their first goal was clear: reach BRL 100 million EBITDA (earnings before interests, taxes, depreciation and amortization) per month. We were able to exceed the goal established for the first quarter after G10 was created, and reached BRL 300 million EBITDA.
In 2017, new members joined the group - reaching 17 members in total - and started to operate in different areas, in addition to that which has assured our financial results. G10 has helped us to properly enhance the integration of our resources, prepare and enhance our Corporate Governance strategy, and review our internal rules and procedures. The group also listed all actions we could take - as well as monitored and kept track of such actions and their results - and promoted connections within our teams and the external world, connecting new elements and strengthening our wise network.
Our priority is to hire local suppliers in order to foster development in the communities in which we operate. Invitations to bid, closer relationship with companies through actions undertaken with local associations and the execution of long-term agreements are some of our goals when we give priority to hire local companies in the areas in which we operate.
In 2017, in a partnership with the Federation of Industries of Minas Gerais - Vale do Aço Regional and SEBRAE, we reestablished our program to dig opportunities (“Garimpando Oportunidades”).This program was designed to foster the development and qualification of suppliers in the surrounding areas with respect to the supply of material bought in the external market or other markets, thus increasing regional competitiveness through technological innovation. Only in the first round of business promoted by this program, 33 opportunities.
Safety has always been a priority among Brazilin industries, but the reduction of the accident rates is still a challenge for all.
As part of its efforts to enhance safety levels, Usiminas has a Safety Awareness Center, which has developed 30 theoretical and practical simulations that put our own employees and our outsourced employees through real accident experiences and risk situations. They may handle artificial arms in our equipment and simulate an incident involving hands, experience electric risk situations, experience the risks of working at heights, experience cargo handling, handle manual tools, among other situations. In 2017, 6,988 employees, third parties and other people visited our Safety Awareness Center.
FSFX opened the Pediatric Oncology Center in HMC II to ensure that children and teenagers with cancer receive quality and humane assistance. This exclusive venue, called “Magical Submarine” because of its decor, is fully equipped.
Because of its playful environment, this Unit receives and promoted integration among children, which makes treatment easier.
HMC’s pediatric oncology services has been officially acknowledged as reference in the Eastern region of Minas Gerais within SUS oncology treatment, pursuant to the ordinance of the Department of Health published in the Official Gazette. This Unit is expected to assist 50 new patients per year through its team comprised by doctors, nurses, technicians, a nutritionist, occupational therapist, speech therapist, physiotherapist, psychologist and social assistant.
They also allow kids’ responsible to be with them 24 hours a day.
The hospital also has a new Rehabilitation Center, focused on social inclusion and on offering greater quality of life to patients who are under orthopedic, neurological or oncologic treatment. A little after 10 months from its opening, the Rehabilitation Center has been helping patients, after discharge, to reach their maximum physical, mental, spiritual, social and economic level. This service is 100% offered to SUS patients. The HMC is the first general hospital of the state´s east region and one of the few in Minas Gerais to offer this service.
Other recent HMC’s investiment is the Casa das Mães (Mother´s Home). This environment was carefully designed to shelter pregnant women about to give birth and the mothers of newborns hospitalized in the Neonatal ICU. Casa das Mães is attached to the Maternity and has a living room, rooms with 10 beds, kitchen, toilets, and meals and hotel business services, giving support and comfort to women coming from distant cities and/or facing a high-risk pregnancy.
This project was created in 2017 to enable participants to enjoy fun and learning moments in our Three Nursery. This venue was created in 1980 as environment preservation and education venue in Ipatinga (Minas Gerais). Through storytelling, we talk about the environment, its preservation, sustainability and our relationship.
Throughout the year, 15 tours were arranged and attended by 760 people from the region, including students, journalists and government representatives.
The value of FSFX’s brand was clear in 2017 after another challenge was beaten off: the relaunch of Cubatão Hospital (HC) - Dr. Luiz de Camargo da Fonseca e Silva. The same level of excellence found in HMC and HMCC could now be found, as from December 2, 2017, in the Metropolitan Region of Baixada Santista.
In order to turn the hospital into an excellence health center, FSFX won a strict bidding process promoted by the Municipal Government of Cubatão. On October 2017, FSFX and the Municipal Government of Cubatão entered into a concession agreement which granted the administration of HC to FSFX for the next five years. All efforts were used to assure that the general hospital and maternity complex would be duly restructured in order to assist intermediate complexity cases of SUS and health insurance patients.
In addition to the extensive renovation and upgrade of equipment, FSFX also hired and trained new employees. Thus, Dr. Luiz de Camargo da Fonseca e Silva Hospital, which had been closed since February 2017, was reopened to offer Baixada Santista’s population quality, modern and humane assistance, signed by FSFX.
FSFX concluded the first stage of the works in record time: only 40 days. Over BRL 9 million will be invested to complete the second stage of the works.
On August 2017, Mineração Usiminas reestablished the activities at ITM Flotation, unit in which iron ore is improved. The Flotation Process include the operational stages of mud removal, flotation (per se), thickening and filtration, and the final product is the pellet feed.
ITM flotation currently runs on 100%-waste fuel, including: thick waste from jigs and spiral gathered in piles, in addition to fine dam waste from fine ore that has been long deposited in the Central Dam. Accordingly, we use and add value to materials that would be wasted in the first place. We estimate the use of 1.9 million tons of waste, which is enough to fill 1300 Olympic-size swimming pools.
Use of thick and fine ore waste allows us to reach our financial results in line with the results from conventional mining, but with the advantage of eliminating all large warehouses to store such waste and the environmental liability which piles and dams represent. Dry waste pile and the Central Dam of MUSA will cease to exist.
One of our main lines of environmental research refer to the economic use of steel aggregate. Steel aggregate is waste from the steel production process and it used to be disposed at landfills, which required large physical storage space and was a relevant environmental liability. Several use possibilities have been studied over the years and we stand out with projects that benefit the steel industry and the communities surrounding our operations.
In 2017, steel aggregate was used in cement industry mills. And, in a partnership with the Federal University of Uberlândia, a study is in progress on the use of steel aggregate as fertilizer. In Cubatão, Maturing Yard operations to improve steel aggregate were commenced. These operations aim to improve the quality of this material through volumetric stabilization, and increase the possibilities of use and add value to steel aggregate. Still in 2017, the National Department of Transport Infrastructure (Departamento Nacional de Infraestrutura de Transportes, or “DNIT”) approved the use of steel aggregate in all federal highways in Brazil, which process we led in a partnership with Instituto Aço Brasil and other steel industry companies. Steel aggregate represents a more economic, safer paving option in relation to natural aggregate, as well as it represents less risks to the environment.
The development of new steel properties goes through several stages, from the identification of client demands, through development of a pilot, industrial stages, to application engineering. As to the latter, steel is evaluated through different processes such as mechanical forming, welding, and corrosion. 22MnB5 steel is a high-resistance steel developed due to the increasing demand by the automotive industry to cut vehicles’ weight, and, consequently, fuel consumption, and to increase passengers’ safety.
In order to obtain higher mechanical properties, 22MnB5 steel goes through a hot stamping process. Stages such as putting blank in the heat treatment furnace and then in the press are critical for non-coated steel so that a thin layer of oxides is formed, which requires superficial sandblasted or shot blasting cleaning. The solution usually adopted to solve this problem is to use Al-Si alloy coated steel. However, because this product has a high cost and does not provide galvanic protection, we have developed a hot galvanized Fe-Zn (GA) alloy coated steel.
A survey for this product had to be developed because we had no knowledge how hot galvanized Fe-Zn alloy coated steel would go through phosphate coating and painting, and, consequently, how it would resist to corrosion due to the layer of oxide that was formed.
These fast-paced corrosion tests revealed that the layer of oxides resulting from the hot stamping process needs not to be removed because they help the dry layer of paint to adhere to steel, and, consequently, help steel resist to corrosion, showing better results than GA steel not submitted to heat treatment process. Field corrosion tests will be applied in order to confirm the good corrosion resistance results from fast-paced tests.
The Brazilian iron ore industry has been continuously moving towards an increase in the exploration of itabirites because of reduced of hematite mines. As a result, sinter feed, which is the main raw material of the sintering process, has been showing inadequate granulometry (increased fine particles) chemical composition (increased level of silica). For this reason, our sintering processes have been showing loss of productivity and lower quality sinter. In order to overturn this scenario, our R&D Center has been dedicated to recover such losses by evaluating the proper use of pellet feed (low silica content iron ore) associated to intensive mixing and the search for alternative low-cost ligands.
As to the latter, lime is currently the only ligand option in the market that can be used in the sintering process. In this regard, a research project has been developed in order to investigate the effect of other ligands and provide technical support to restore industrial sintering productivity. One of the challenging stages of this project consisted in the identification of ligands, used in other industrial segments such as civil construction, mining and the food industry, that could be used in the sintering process. A type of ligand was found in a pilot that enabled full recovery of sintering process productivity and the production of proper quality sinter. Another ligand alternative also had potential to partially recover sintering process productivity, but with a small, yet acceptable, drop of chemical quality of sinter. By virtue of the excellent results obtained in the lab, tests will be applied to the industrial sintering process throughout 2018.
O programa Atitude Rima com Saúde foi lançado em 2010 pela Usisaúde, em parceria com a Usiminas, e conta atualmente com 13 projetos diferentes, voltados para adultos, gestantes, idosos, adolescentes e crianças. O mais novo deles, o projeto Superar, incluído em 2014, tem como foco a avaliação e acompanhamento de problemas e lesões relacionados ao Sistema Osteomuscular (ossos, músculos e articulações), causados pela prática de esportes, acidentes de trânsito ou movimentos repetitivos inadequados com o corpo. Inicialmente implantado em Ipatinga (MG) e Cubatão (SP), o Superar já conta com 1.145 empregados encaminhados para o projeto.
O resultado da atuação do Atitude Rima com Saúde se reflete em ganhos para todos. Afinal, empregado saudável e bem disposto é sinônimo de maior produtividade e menor chance de incidência de doenças e absenteísmo. Para a Usisaúde, beneficiários saudáveis significam, indiretamente, a redução dos custos assistenciais em saúde, contribuindo para equilibrar a relação custo e receita e garantir a sustentabilidade do negócio.Projetos oferecidos:
O Hospital Márcio Cunha (HMC) é um hospital geral, credenciado para atendimentos de alta complexidade e prestação de serviços nas áreas de ambulatório, pronto-socorro, internação e serviços de diagnóstico. Com 530 leitos em duas unidades, além de uma terceira unidade exclusiva para o tratamento de pacientes oncológicos e uma unidade de Medicina Diagnóstica, é referência para cerca de 800 mil habitantes em mais de 35 municípios do leste de Minas Gerais.
A Unidade de Oncologia do Hospital Márcio Cunha, referência regional no combate ao câncer, atualmente realiza mais de 74 mil procedimentos por ano, entre quimioterapias, radioterapias, atendimentos em medicina nuclear e consultas.
Primeiro do país a ser acreditado com Excelência pela Organização Nacional de Acreditação (ONA), em 2003, o Hospital Márcio Cunha alcançou em 2014 outra importante conquista, dessa vez internacional. O HMC foi recomendado pela Det Norske Veritas (DNV) para receber a certificação DNV International Accreditation Standard (DIAS), a norma de acreditação hospitalar baseada na National Integrated Accreditation for Healthcare Organizations (NIAHO), que é formalmente reconhecida pelo Departamento de Saúde dos Estados Unidos.
Todo esse reconhecimento representa um diferencial importante na prestação de serviços de saúde para pacientes da Usisaúde, do Sistema Único de Saúde (SUS) e de convênios.
Desde a sua fundação, a Usiminas desenvolve em Ipatinga (MG) ações de implantação, recomposição e preservação das áreas verdes da empresa, com o cultivo e o fornecimento de mudas, além da manutenção preventiva de incêndio por meio da técnica de aceiro. Em 2015, foram executados 136.194 m² de aceiro e cultivadas 22.399 mudas de várias espécies, sendo 12.473 mudas de espécies arbóreas, 5.531 frutíferas e 4.395 mudas ornamentais. Também foram processados 5.386 kg de humos.
ENERGIA: O setor de aço é intensivo em energia, portanto, busca continuamente alternativas tecnológicas e operacionais para aumento da sua eficiência energética. Em 2015, trabalho realizado na Usina de Ipatinga conseguiu reduzir em 10,9% o consumo de energia térmica na linha de Chapas Grossas e 6,9% na linha de Laminação a Quente.
QUALIDADE DO AR: Em Ipatinga, o monitoramento do ar é contínuo e automatizado com dados online. São quatro estações de monitoramento que contam com instrumentos de alta tecnologia para monitorar a concentração dos poluentes atmosféricos e também variáveis meteorológicas locais, totalizando 19 parâmetros, instaladas no entorno da Usina e operadas pela Usiminas. Órgãos públicos recebem automaticamente o resultado.
EFLUENTES: O descarte de efluentes de todas as unidades de negócio da Usiminas foi de 130,6 milhões de m³ em 2015. Todos os efluentes das empresas do grupo passam por tratamento antes de serem devolvidos ao meio ambiente, em um processo que inclui etapas de decantação, floculação e filtragem. Dessa forma, a Usiminas atende aos padrões legais para descarte.
This 490 MPA high-mechanical resistance steel is produced through a cold rolling process and was developed to the automotive industry, especially for the production of cover panels such as vehicle doors, hood, ceilings, mudguards, etc. This product may be provided as a cold rolling product, but it may also go through an electrogalvanizaton or pre-phosphate treatment process.
It has great potential to reduce the weight of panels given its greater mechanical resistance and the bake hardenability phenomenon.
This cold rolling steel has ultra-high resistance and it was developed to the automotive industry in order to increase vehicle safety. This product shows, in addition to high mechanical resistance, great performance in parts submitted to stretching (hole expansion greater than 50%), such as side rails and suspension parts. These characteristics results from a microstructure which combines ferrite, bainite and some martensite. This product may be provided as a cold rolling product, but is may also go through an electrogalvanization process.
Our Complex Phase 800 hot rolling steel has high mechanical resistance (AHSS), and has minimum LR of 800MPa. This product has hole expansion greater than 50%, which makes it suitable for manufacturing of vehicles’ structural parts, especially suspension components, which require high folding capacity, hole expansion and flangeability. This product combines high resistance with hole expansion and it is the only of its kind available in Brazil.
This 300 degree weathering steel, for small diameter pipes, has great ERW weldability and corrosion resistance throughout the welding line, Grooving Corrosion (GC).
Weathering steel with high silicon content and high resistance to atmospheric corrosion. This product has been applied to corrosion/erosion damaged parts, as a replacement to ferritic stainless steel, of AISI 400 (ASTM A240 UNS-S410 03) series. Such replacement showed satisfactory performance with respect to corrosion/erosion, reduced costs and better weldability when compared to stainless steel.
TMCP structural steel resistant to high-resistance atmospheric corrosion, with minimum drainage limit of 485 MPa at high tenacity. This product meets all technical requirements of V ASTM A709 HPS 70W standard and it was developed to the civil construction, industry, especially for the construction of metal bridges, as well as the industrial machinery and equipment segment.
This product corresponds to a family of four types of steel classified by their hardness which better suit the manufacturing of doors and windows. Such hardness classification gives projects greater flexibility because you may increase resistance and reduce the thickness of doors and windows. This product goes through an electrogalvanization process which makes it greatly resistant to corrosion when compared to door and window frames manufactured with non-coated LF steel.