Simec to add EAF capacity in Brazil

Mexico-based steel producer Grupo Simec reportedly plans to double the capacity at its scrap-fed electric arc furnace (EAF) rebar mill in Pindamonhangaba, Brazil.

S&P Global Platts, citing a Simec announcement, says the EAF mill will expand from capacity of 500,000 metric tons per year to 1 million metric tons. The plant, operated by the GV do Brasil Simec subsidiary, produces “rebar and rebar coils,” according to S&P.

Some $300 million will be invested by Simec to install new EAF technology and a new rolling mill. Simec also says, according to S&P, that it will “double the capacity to recycle ferrous scrap to 1.25 million metric tons per year” at the Pindamonhaba complex.

Grupo Simec estimates a 28-month timetable to complete the expansion, with the new capacity planned for a 2023 startup.

Improving economic conditions and an emphasis on infrastructure spending has created positive sentiment toward steelmaking in Brazil. In April, Brazil-based Gerdau SA announced it would restart its electric arc furnace (EAF) steel mill in Guaíra, Brazil, in the second half of this year because of “the positive scenario for steel demand” in the nation.