Brazil's Simara to startup rod plant in late '07

Brazilian pig iron producer Simara has announced it will start operations at its new 400,000 metric ton per year rod project in the second half of 2007. Construction has already started on the facility, which is being installed at Simara's existing operations at its Maraba city plant, located in northern Brazil. The plant currently produces 220,000 metric tons of pig iron per year. The new facility will produce rod with sizes between ¼” and 1”. The target market of the company is the center-south, north and part of the northeast Brazilian regions, and also Central America. Executive director Ian Correa told the press that the company will export all of its pig iron production in 2006, though shipments abroad will decline after production starts at the rod facility, since 70 to 80 percent of its pig iron will go toward rod production. Simara is controlled by Aco Cearense, a steel and iron product distributor.