USIM3

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 under 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 cycles of capacity expansion, 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-rolled carbon steel, with an integrated chain that stretches from iron ore mining to the transformation of steel into higher value-added products and services. In 1991, the company began trading its shares on the stock exchange and, since then, has maintained a significant position in the Brazilian flat steel market. The company stands out for having 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 coils, galvanized products and customized solutions for industrial customers in several sectors.

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

In Steelmaking, Usiminas operates integrated mills in Ipatinga (MG) and Cubatão (SP), with capacity to meet demands ranging from heavy structural applications to more sophisticated uses in the automotive and durable goods industries. The portfolio includes steel slabs used as feedstock for rolling, heavy plates destined for infrastructure, shipbuilding, energy and industrial equipment, hot-rolled coils widely used in civil construction, pipes and road implements, cold-rolled products aimed at automobiles, home 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, coke-oven byproducts and rerolling services, and relies on Soluções em Aço Usiminas to transform coils and plates into blanks, cut-to-length plates, welded tubes and other processed items.

In Mining and 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 concentration of iron ore. The plants’ nominal capacity totals around 12 million tons per year, although effective capacity depends 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 bulk 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 seaborne shipping.

Usiminas serves a diversified base of industrial sectors, without any material concentration in a single third-party customer above 10% of consolidated accounts receivable in 2023 and 2024. The steel produced by the company is used in automobiles, trucks, buses, road implements, steel structures for buildings and bridges, ships, oil platforms, wind towers, solar panels, agricultural equipment, industrial machinery, home appliances and energy infrastructure equipment. Soluções em Aço Usiminas broadens the company’s presence in the value chain by operating in steel distribution and processing, serving segments such as automotive, auto parts, construction and infrastructure, electronics, energy, machinery and equipment and household utilities, reinforcing the company’s role as a supplier of essential inputs for various 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). Steelmaking 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 standing out as the main destination.

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

On environmental, social and governance aspects, Usiminas has a history of environmental education and social responsibility initiatives in its areas of influence, as evidenced by projects launched in the 1960s and 1980s, including hospital facilities and environmental education programs in Minas Gerais. In mining, MUSA implemented a tailings filtration and dry stacking project, allowing it to discontinue the use of dams, and deployed sludge centrifugation systems to reduce environmental risks associated with waste disposal. In governance and integrity, the company established an Integrity Program in 2019, which consolidates its code of ethics and conduct policies to guide relationships with internal and external stakeholders, strengthening formal compliance practices and corporate risk management in line with governance standards for publicly traded companies with shares listed on B3.