Bloomberg reported that Vale SA plans to accelerate growth in iron ore output to recover market share it has lost to competitors including BHP Billiton Ltd and Rio Tinto Group.
Mr Jose Carlos Martins head of ferrous and strategy at an investors conference in London said that the company, based in Rio de Janeiro, expects to boost output by 20 million tonne to 25 million tonne a year after it reaches 400 million metric tonne in 2017. Vale will bring new projects online and expand its share of the iron ore market after output is forecasted to slip in 2013 for the third consecutive year.
Mr Martins said that Vale aims to get back 6 percent of market share that we have lost in the last 6 years. We have plenty of space to recover our market share in a very profitable way."
According to data compiled by Bloomberg Industries, Vale is cutting investments, suspending projects and selling assets as demand wanes in China and Europe, the company's 2 biggest markets. The company's share of the global seaborne iron ore market declined to about 26% in the H1 from almost 28% a year earlier. Vale has struggled with declining resources at older mines and production delays caused by heavy rains earlier this year.
