Brazilian company Siderurgia do Tocantins (Sidertins) plans to install a pig iron plant in central Brazil's Tocantins state, the state government reported.
The 190,000t/y pig iron facility will be Tocantins' first and be located in Araguaína, a city in the northern part of the state. Construction is scheduled to begin in early 2009.
Owned by businessmen Francisco and Henrique Corrêa, Sidertins' initial investment is 30mn reais (US$18.6mn). According to the statement from the Tocantins government, the Corrêas chose the state due to fiscal incentives and favorable logistics. One important aspect is the plant's proximity to the North-South railroad's multimodal platform.
Production will be exported and sold on the domestic market.
In addition, Sidertins is planting 300ha/y of eucalyptus on its recently purchased tract of land that will be the site of the plant, with the aim of foresting 6,000-7,000ha. Eucalyptus wood is used to make the charcoal needed for pig iron production.