TOKYO Japans Metal One Corp. and Shibaura Group have agreed to set up a heavy plate processing joint venture in Brazil.
Metal One Shibaura Brasil Ltda.s São Paulo plant is expected to begin operations in April 2014, producing 1,000 tonnes per month of cut heavy plate mainly for use in the manufacture of construction machinery.
The two steel trading companies noted that Brazil is undergoing a massive construction and infrastructure boom that they want to tap into. The country is hosting the Fifa World Cup in 2014 and the Olympic Games in 2016. Additionally, São Paulo is bidding to host the World Expo in 2020, and Brazil will celebrate its 200th independence in 2022.
The plant will become Metal Ones fourth overseas heavy plate processing unit and Shibauras second.
A version of this article was first published in AMM sister publication Steel First.