During 2003 capital investments in Vega do Sul totaled US$ 22 million.
      Projects in progress include the production optimization to 5 million tons of slab per year as well as the plan to expand slab production to 7.5 million tons per year.




      In 2003 CST’s slab production optimization to 5 million tons/year was realized as projected.
      The main project is Thermoelectric Plant 4, which started operations in January 2004. Its generation capacity of up to 75 MW ensures that the Company will remain self-sufficient in its energy needs even with the HSM fully operational.
      The optimization project also involved Oxygen Plant 4, the Steel Shop Gas Recovery System (LDG) and an expansion of the Company’s electric system.

      Approved by the Board of Directors and officially announced in April 2003, CST’s Expansion Plan will increase production capacity to 7.5 million tons/year.
      Investments will total US$ 1 billion, US$ 600 million of which will come directly from CST and US$ 400 million from other participating companies. The project will involve the construction of new production units and new equipment at the plant.
      Among CST’s portion of the investments are a third blast furnace with a new PCI (Pulverized Coal Injection), a third steel shop converter, a third continuous caster and a second RH Vacuum Degasser, as well as systems in the utilities and support areas.