Chinese automaker Great Wall Motor (GWM) will build a second car factory in Brazil, which could drive domestic flat steel demand up.
GWM's new factory, in southeastern Espirito Santo state, will have a nameplate capacity of 200,000 vehicles/yr, four times larger than its first Brazilian plant, according to the state government.
The facility is part of the company's R10bn ($1.9bn) investment plan in Brazil through 2032.
GWM sells mostly electric vehicles (EVs) in Brazil, but it has a couple of internal combustion engine (ICE) models as well. It is still unclear which model the automaker will manufacture in the plant, but the Haval H4, a compact SUV, is a strong contender. Given the popularity of this car category in Brazil, demand for the H4 would likely be in line with the new plant's capacity.
The H4 is sold in other Latin American countries as a hybrid vehicle under the name of Haval Jolion Pro.
Since the factory will be built from scratch, it is difficult to pin an inauguration date as construction work in Brazil often faces delays.
GWM has close ties with the Espirito Santo government, having used the state's main port, Vitoria, as an import hub for all the vehicles it brought from China to Brazil.
GWM plant could drive domestic steel demand
Construction is expected to use from 40,000-70,000 metric tonnes (t) of steel, according to the Espirito Santo government.
Most of the flat steel used during the building phase will likely be sourced from domestic producer ArcelorMittal. The new factory aligns with the steelmarker's plans to build a cold-rolling mill in Tubarao — also in Espirito Santo — which is its largest plant in Brazil, the company told Argus.
ArcelorMittal announced in 2025 a R4bn ($777.4mn) investment to boost steel output in Brazil, but it has yet to officially decide where to allocate the resources. The company expects to make a final decision by the end of the first quarter.
The GWM project could signal that ArcelorMittal may ultimately favor Espirito Santo over expanding its Pecem plant, in northeastern Ceara state.
Construction is also expected to use 200,000-350,000t of concrete.
