From the Newsroom*
São Paulo – Usiminas, the Brazilian steelworks, was included in the Dow Jones Sustainability Index on Monday. Traded on the New York Stock Exchange, the index includes companies that have strong environmental and social responsibility. Apart form Usiminas, only two other steelworks are included in the index: the Korean Posco and the Australian Bluescope Steel. To integrate the index, companies undergo a rigorous selection process.
This year, 42 companies were inserted in the index and 33 were removed. Apart from Usiminas, another six Brazilian companies are already included in the index. They are Aracruz (pulp), Bradesco (banking), Itaú Holding Financeira (banking), Cemig (electricity), Itaúsa Investimentos (financial sector) and Petrobras (oil). Evaluation for entry into the index includes examination of strategic planning, transparency in management, corporate governance, customer, client and supplier relations, social-environmental activities, risk management and human resource policies.
"This is one of the most important and desired indices in the world. The selection universe is composed of 2,500 companies and few manage to enter the Dow Jones Global Sustainability list," stated Usiminas president Rinaldo Campos Soaresa, in a press statement. The index is called DJSI Global. The Usiminas System is the largest steelworks complex in Latin America specialized in flat steel, it is also among the largest worldwide. The company is the market leader in its sector.
The Usiminas System, which has among its main companies Cosipa and Usiminas, had net profit of 1.4 billion Brazilian reais (US$ 750 million) in the first half of this year, 38% greater than in the same period last year. Sales totalled 3.9 million tonnes, 2% less than the volume traded in the first half of 2006. Revenues in the period, however, reached 6.7 billion reais (US$ 3.6 billion) and presented growth of 12% over the same months in 2006.
Greater prices paid for products aligned to reduction of expenses and greater sales on the domestic market, mainly of greater value-added products, influenced the performance, according to the company. The Usiminas System ended the first half of this year with 52% participation in the Brazilian flat steel market. The main markets for company exports in the period were the United States, followed by Germany, Spain, Argentina, Mexico, Thailand, India, the United Kingdom, Chile and Ecuador.
Usiminas has social and environmental responsibility programs. One of them is Xerimbabo project, with takes to community sites, mainly schools, discussion and education about environmental conservation. Through this project, Usiminas promotes courses, seminars, talks and exhibitions. It started being developed in 1984 and has already spread throughout Minas Gerais, where the company is based, and to surrounding areas. Among several other projects developed, the Áreas Verdes (Green Areas) program is also prominent. Its objective is reforesting areas degraded by human activities.
*Translated by Mark Ament
