+ History

The history of pig iron industry in Minas Gerais mixes itself with the history of the state in what they both have of more important: the challenge, the pioneering spirit, the achievements and a strong respect for the Nature that grows on the ground and hides a treasure under the ground.    

The first enterprise – still on a handcraft basis – to produce pig iron was carried out by Jean Antoine F. de Monlevade in 1827. This daring entrepreneur established a set of Catalan Forges to produce pig iron in the locality of Caeté, where there were large reserves of iron ore.  The first blast-furnace was built in the municipality of Itabirito, in 1888. The original furnace, in stone masonry,  was 9 meters in height and had the capacity to produce 6 tons of iron per day. With modern facilities, this mill is running still today, under the name of VDL Siderurgia.       

The World War I brought an encouragement to the industry in general. However, the iron industry had a modest growth for two decades.

The first integrated steel mill in South America was founded in 1925. This was Cia. Belgo-Mineira,  an association between a Belgian-Luxembourgish consortium and Companhia Siderúrgica Mineira that, originally, produced iron using the system of Catalan Forges.   In 1937,  Belgo-Mineira started its second mill that was also integrated and based on charcoal.  It is important to remark that this company was the first one to start an afforestation program with eucalypt species aiming to supply the charcoal demand of the blast furnaces in operation.     

It was only in 1941 that the steel production based on coke was used in Brazil by Companhia Siderúrgica Nacional, established in Volta Redonda, in the state of Rio de Janeiro. 

The great growth of the pig iron and steel industry took place as of the 60s. This growth came along the establishment and growth of the automobile industry, during the so-called JK years (¹).

A new growth outbreak occurred in the 70s due to the global boom of the steel industry. Technical improvements in the blast furnaces led to competitive advantages for the Brazilian pig iron.

The carousel-shaped ingot molder generated products with suitable dimensions for handling and transportation and Brazil won market and an important position as an exporter of the product.
The growth in demand led to a great expansion of the installed capacity in the 80s, when the production reached 6 million tons/year.

Despite some recessionary bubbles and market retraction led by changes in the economic scenario, pig iron is still a product with great acceptance in the international market.