USIM3 Usiminas

Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas, whose shares are traded on B3 under the tickers USIM3, USIM5 and USIM6, is one of Brazil’s leading steel companies, focused on flat steel. Founded in 1956 in a context of strong industrial expansion during the Juscelino Kubitschek administration, its mill was built in Ipatinga (MG), where the first blast furnace was lit in 1962. Over the following decades, it went through capacity expansion cycles, technological modernization, privatization in 1991 and significant corporate restructurings, including integration with the former Cosipa in Cubatão (SP), which consolidated the company’s current corporate structure. From the 2010s onward, the shareholder base came to include Ternium and Nippon Steel Corporation in the controlling block, strengthening ties with global steel groups.

Usiminas’ core activity is the production and sale of flat carbon steel, with an integrated chain that ranges from iron ore mining to transforming steel into higher value-added products and services. In 1991, the company began trading its shares on the stock exchange and has since maintained a significant position in the Brazilian flat steel market. The company stands out for owning one of the largest flat steel complexes in the country and for operating across the entire steel value chain, including mineral extraction, production of slabs, heavy plates, hot-rolled and cold-rolled products, galvanized products and customized solutions for industrial clients in various segments.

Usiminas’ business model is organized into two major business units: Steel and Mining & Logistics. The Steel unit is responsible for manufacturing and selling steel products, serving the automotive, industrial and distribution segments, as well as exports. The Mining & Logistics unit focuses on the extraction and processing of iron ore in the form of lump ore, sinter feed and pellet feed, as well as warehousing, cargo handling, transportation and operation of road and rail terminals. In 2024, the Steel unit accounted for about 91% of the company’s consolidated net revenue, while Mining & Logistics represented approximately 11%, indicating a clear predominance of steelmaking as the main source of revenue.

In Steel, Usiminas operates integrated mills in Ipatinga (MG) and Cubatão (SP), with capacity to serve everything from heavy structural applications to more sophisticated uses in the automotive and durable consumer goods industries. The portfolio includes slabs used as input for rolling, heavy plates destined for infrastructure, shipbuilding, energy and industrial equipment, hot-rolled products widely used in civil construction, pipes and road implements, cold-rolled products aimed at automobiles, household appliances, packaging and construction, as well as galvanized products, both hot-dip and electrogalvanized, targeted mainly at automakers and the construction sector. The company also sells byproducts and special services, such as slag, sludge, carbochemical products and rerolling services, and benefits from the activities of Soluções em Aço Usiminas in transforming coils and plates into blanks, cut-to-length plates, welded tubes and other processed items.

In Mining & Logistics, Usiminas operates through Mineração Usiminas S.A. (MUSA), with operations in Itatiaiuçu and Mateus Leme, in Minas Gerais, using open-pit mines and beneficiation plants for crushing, washing and concentrating iron ore. The plants’ nominal capacity totals around 12 million tons per year, although effective capacity is conditioned on the availability of tailings treatment and disposal. In 2024, approximately 8.5 million tons of ore were sold, mainly in the form of sinter feed, with the majority destined for the foreign market, especially Asia, and a relevant portion supplied to the Ipatinga mill itself. Logistics combines road transport to rail terminals in Minas Gerais and, for exports, rail transport to ports followed by maritime shipping.

Usiminas serves a diversified base of industrial sectors, without any single third-party customer accounting for more than 10% of consolidated accounts receivable in 2023 and 2024. The steel produced by the company is used in automobiles, trucks, buses, road implements, metal structures for buildings and bridges, ships, oil platforms, wind towers, solar panels, agricultural equipment, industrial machinery, household appliances and energy infrastructure equipment. Soluções em Aço Usiminas expands the company’s presence in the value chain by operating in steel distribution and processing, serving segments such as automotive, auto parts, civil construction and infrastructure, electronics and electrical, energy, machinery and equipment, and household utilities, reinforcing the company’s role as a supplier of essential inputs for several branches of Brazilian industry.

Usiminas’ geographic footprint combines administrative centers, industrial plants and mining and logistics operations distributed across different Brazilian states. Corporate offices are located in Belo Horizonte (MG), São Paulo (SP) and Porto Alegre (RS). Steel activities are concentrated in Ipatinga, Santa Luzia and Betim, in Minas Gerais, as well as units in Cubatão, Guarulhos and Taubaté, in São Paulo, Vitória (ES), Cabo de Santo Agostinho (PE) and Porto Alegre (RS). In mining, the main operations are in Minas Gerais, while export logistics involves stakes in maritime terminals such as the Praia Mole Private Terminal, in Espírito Santo, and the Cubatão Private Maritime Terminal, in São Paulo. Iron ore sales are more heavily weighted toward the foreign market, with China as the main destination.

Usiminas’ activities are strongly influenced by environmental regulation and the need for permits for steel and mining facilities. Mills and mining operations depend on prior, installation and operating environmental licenses granted by state agencies, such as SEMAD, FEAM, IEF, IGAM and COPAM in Minas Gerais, and the Secretariat for the Environment, CETESB and DAEE in São Paulo, in addition to state environmental agencies in other states. The company keeps its plants licensed or in a regular license renewal process, which, under the law, is equivalent to a valid license, with conditions monitored by the competent authorities. In mining, operations comply with a broad set of federal and state rules related to water resources, dam safety, solid waste, occupational health and safety and environmental crimes.

In environmental, social and governance aspects, Usiminas has a track record of initiatives in environmental education and social responsibility in its areas of influence, as evidenced by projects started in the 1960s and 1980s, including hospital structures and environmental education programs in Minas Gerais. In mining, MUSA implemented a tailings filtering and dry stacking project, enabling the discontinuation of dam use, and installed sludge centrifugation systems to reduce environmental risks associated with waste disposal. In governance and integrity, the company established a Integrity Program in 2019, which consolidates a code of ethics and conduct policies to guide relationships with internal and external stakeholders, reinforcing formal compliance practices and corporate risk management in line with the governance standards of publicly traded companies listed on B3.