Votorantim Siderurgia (Steel) is building a new steel plant in Resende, Rio de Janeiro, which will produce about 1 million tons of long steel when it reaches full capacity. Its inauguration is scheduled for 2009.

The project is based upon the mini-mill concept, which means a small plant compared to an integrated plant. These steel plants use ferrous scrap as their main raw material and produce steel from electric furnaces. The mini-mills are noted for their low environment-impacting processes and low operation and maintenance costs. Products resulting from this kind of production penetrate highly quality-demanding market segments and strengthen the plant’s competitiveness.

Resende was the location of choice for the new VS unit due to its proximity to the largest Brazilian steel market, natural gas and high-tension electricity availability, and the logistic ease for both railway and highway.