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According to a media report by Diario do Nordeste, the new equipment would meet the growing demand for the product, as the Russian invasion of Ukraine has limited flat steel supplies in the global market.

The media report noted CSP is yet to take a decision on whether it will actually install the new equipment, but the possibilities are “big.” The decision could be announced this or next year.

CSP has reportedly established a condition for the government of Ceará state to build the new rolling mill. The condition relies on the state’s government ability to bring a major automaker to the region. CSP exports most of the slab it produces.