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Regional production of steel: an economic model for a business opportunity in Mato Grosso do Sul, Brazil

When analyzing a steel production opportunity, why should an industrial park be created? Why should a local enterprise be chosen instead of a large integrated mill? How to cope with the small local market? Because the steelmaking industry is facing a technological revolution, not only with the way steel is produced, but also with how the industry is structured, it is necessary to examine the fundamental parameters of the steelmaking technology: capital needs; lower energy consumption; environmental awareness; and ways to approach the customers and clients. The state of Mato Grosso do Sul has good prospects for hosting a modern integrated upstream steelmaking enterprise.. Iron ore is plentiful; natural gas as a source of energy and iron ore reductant is available from a nearby pipeline; transportation is readily available either via rail or road; agribusiness is assuring steady economic growth; and lastly, all the steel consumption in this area comes from imported sources.

Productive clusters; vertical industry agglomeration; regional production; productive centers; direct reduction; integrated steel mill


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