In an expansion phase, the company is investing $200 million in its production capacity, which will increase to 800,000 tons per year of rolled steel. The investment, named SINOBRAS Phase 2, includes the extension of the buildings for the Rolling and Drawing units; an increase in scrap processing to 170,000 tons per year, with the implementation of Shredder equipment; and the construction of a new power substation and a 230 kV transmission line, aimed at meeting the company’s new electrical load requirements and enabling future use of energy from the Belo Monte Hydroelectric Plant.
In addition to expansion, SINOBRAS and Vale signed a commitment in May 2022 to develop a New Steel Mill for the production of steel billets in Marabá. The purpose of this project is to promote the development of a metal-mechanical hub, bringing significant opportunities and the establishment of new companies.
Under the signed agreement, Vale supports the project by issuing guarantees to facilitate the financing to be secured by SINOBRAS for the installation of the New Steel Mill. SINOBRAS, in addition to engineering studies, is responsible for the implementation and operation of the plant. Production is expected to commence after the startup of Tecnored, a subsidiary of Vale, projected for the second half of 2025.
