Chinese company GWM to build second car factory in Brazil
Chinese automaker Great Wall Motor (GWM) will build a second car factory in Brazil, which could boost domestic demand for flat steel products.
The new GWM plant in the southeastern state of Espiritu Santo will have a factory capacity of 200,000 people.cars per year, which is four times more than the first factory in Brazil, according to the state government.
The plant is part of the company's 10 billion rand ($1.9 billion) investment plan in Brazil through 2032.
GWM sells mainly electric vehicles (EV) in Brazil, but it also has several models with internal combustion engines (ICE).
It's unclear which model the automaker will produce at the factory, but the Haval H4 compact SUV is a strong contender.
Given the popularity of this car category in Brazil, demand for the H4 is likely to match the capacity of the new factory.
The H4 is sold in other Latin American countries as a hybrid car called the Haval Jolion Pro.
Since the plant will be built from scratch, it is difficult to pinpoint the opening date, as construction work in Brazil is often delayed.
GWM has close ties with the government of Espiritu Santo, using the state's main port, Vitoria, as the import hub for all vehicles it brings from China to Brazil.
GWM plant can boost domestic steel demand
Between 40,000 and 70,000 metric tons (t) of steel are expected to be used in the construction, according to the Espirito Santo government.
Most of the sheet steel used during the construction phase is likely to be sourced from the domestic manufacturer ArcelorMittal.
The new plant is in line with the steel company's plans to build a cold rolling mill in Tubarao (also in Espirito Santo), which is its largest plant in Brazil, the Argus company said.
ArcelorMittal announced a 4 billion rand (US$777.4 million) investment in 2025 to increase steel production in Brazil, but it has yet to formally decide where exactly to do so.allocate resources.
The company expects to make a final decision by the end of the first quarter.
The GWM project may signal that ArcelorMittal may eventually prefer Espiritu Santo to expand its plant in Pecem in the northeastern state of Ceara.
It is expected that 200,000-350,000 tons of concrete will be used in the construction.