Votorantim Siderurgia’s (Steel) Forest Unit – created in the 70’s – comprises four eucalyptus farms which aim to sustain the Steel Business expansion through charcoal production for pig iron production, one of steel’s main raw materials. From this verticalization in the productive process, VS adds value to the end product, increasing its competitiveness in terms of quality and price.

The Forest Unit is composed by the Bom Sucesso, Riacho, Santa Cecília, and Santa Rita farms, located in the cities of Vazante, Paracatu, and João Pinheiro, besides offices in Cruzília and Pompéu, all of them in Minas Gerais state.

The total farm area is of about 82.500 hectares, out of which 50% are eucalyptus-crop-destined, 34% comprise natural reserves and permanent preservation areas, and 16% consist of dwelling villages, roads, constructions, rivers, lagoons, etc.

The Forest Unit’s current charcoal production is 219 thousand m³ a year, and pioneering tests are being developed for a new coal technology (DPC) which, besides the operational efficiency gains, will provide considerable benefits reducing atmospheric emissions.   

Nowadays,VS does not have its own pig iron production. The charcoal from the Forest Unit is destined to Barra Mansa’s pig iron suppliers, who use it as a thermo-reducer, carbon and heat source for iron ore reduction in the blast furnace. Each ton of pig iron consumes nearly de 3m³ of charcoal.

In 2008, the Forest Partner Program was launched in Cruzília (southern Minas Gerais) and Pompéu (mid-northern Minas Gerais). This program aims to plant forests in partnership with the landlords, producing timber and coal and promoting regional development.