Brazil-based SADA Group has announced that it has signed an agreement with ArcelorMittal Brazil through its subsidiary IGAR, covering the processing and recycling of scrap metal.
The contract covers scrap processing, the implementation of dedicated storage and handling infrastructure. It is also aimed at strengthening circular economy practices within Brazil’s steel value chain.
IGAR facility to serve as national recycling reference
Located in Igarapé, in the state of Minas Gerais, the IGAR facility is scheduled to be inaugurated in February. Once operational, it is expected to become Brazil’s largest automotive recycling center and a national reference point for scrap processing.
The facility is designed to support large-scale recovery and reuse of steel scrap, improving material efficiency and reinforcing the integration of recycled inputs into domestic steel production.
Scrap use supports ArcelorMittal’s decarbonization strategy
The increased use of scrap metal forms a core pillar of ArcelorMittal’s sustainability and decarbonisation strategy. By expanding scrap-based steelmaking, the company aims to reduce waste generation and lower carbon emissions associated with primary steel production, while improving overall resource efficiency.
The project is aligned with Brazil’s National Solid Waste Policy (PNRS) and the Mover Program, both of which promote waste reduction, recycling, and the reintegration of secondary raw materials into industrial production cycles.