SID is a fully integrated Brazilian steel company that as the name implies used to be a state-owned company until 1993. Full integration means that SID can not only produce steel products that are in high demand, but also owns iron ore mines, railroads, and sea ports.
It was privatized and acquired by a Brazilian group headed by the Steinbruch family.
The company produces hot- and cold-rolled flat steel, galvanized sheets, and tin plates for the packaging, automotive, and construction industries. Companhia Siderurgica Nacional's integrated steel-making complex in Latin America consists of mines, steel mills, railroads, ports, services, and distribution centers with the capacity to produce five million tons of crude steel per year. The company is engaged in the mining of iron ore, limestone, and dolomite in the State of Minas Gerais; this vertical integration of the firm into raw material supply means that CSN is very well positioned with respect to its steelmaking production costs. Companhia Siderurgica Nacional maintains strategic investments in railroads, electricity, and ports to cater to the needs of the Presidente Vargas mill and to improve the company's other activities. The company exports around 40% of total sales volumes. United States and Europe each accounts for more than 30% of exports, Asia for 10 to 15%, and Latin America for 10%. China represents 40% of Asian sales. Total production capacity in thousands of tons per year is as follows: hot-rolled flat steel (1,440), tin plates (1,100), cold rolled flat steel (860), and galvanized sheets (1900).
In April 2011, the Brazilian government replaced Vale's chief executive officer Roger Agnelli. Many industry observers interpreted this step to reflect government dissatisfaction with the under-investment by Vale in steelmaking in Brazil. If this is so, it seems inevitable that Agnelli's successor will place emphasis on converting a greater proportion of Vale's iron ore into higher value-added steel products (rather than just exporting much of this ore) meaning that competition in the Brazilian steel sector can be expected to get fiercer in the coming years.