Brazilian steelmaker SDS Siderúrgica has announced a major expansion with a BRL 100 million (around $18 million) investment in a new pig iron facility located in Minas Gerais, according to local media reports. The plant will have a monthly production capacity of 12,000 mt, nearly doubling the company’s current output and generating 180 new direct jobs.
In the initial phase, the new facility will produce pig iron, primarily used by steel mills. In the second phase, SDS will begin producing nodular pig iron, which is in high demand in the automotive and auto parts industries.
Nodular pig iron production to expand export potential
Currently, SDS operates a single plant focused on special nodular pig iron, with 70 percent of its output exported, mainly to the United States and Germany. The remaining 30 percent is supplied to domestic steelmakers and foundries.
Revenue expected to climb to BRL 1 billion by 2026
According to company president Frederico Silva, the new investment is projected to increase annual revenues from BRL 600 million to BRL 1 billion by 2026. Silva emphasized Brazil's competitive edge in low-carbon pig iron production, which aligns with global decarbonization targets for 2030 and 2050.