Brazilian site expanding its production capacity
Waelzholz has always been committed to serving the global market for precision cold-rolled steel materials. In doing so, product quality, supply reliability, logistics, and sustainability are the company’s top priorities. At the same time, tariffs and trade restrictions are changing the global economic environment. To meet these challenges, Waelzholz – as an internationally active partner – is investing specifically in the respective economic regions, as this allows us to adapt our production and logistics systems to local conditions.
The current investment in new equipment at the São Paulo site is fully aligned with this development, as Baroudi Zelit, CEO of Waelzholz Brasmetal, explains:
We see excellent opportunities for growth in the Latin American market as a whole and in Brazil in particular. For example, we are seeing both established and new car manufacturers investing in production facilities. This is also leading to an increased demand for steel strip products.
In the first phase of the capacity expansion project, Waelzholz Brasmetal is installing a four-high reversing mill and a two-base bell annealing furnace, which are scheduled to be up and running by May 2026. This investment alone will increase the Brazilian location’s production capacity by 11,000 tons per year. All in all, the total planned investment in additional heat treatment, slitting, and packaging equipment will result in an annual capacity increase of 33,000 tons.
Enhanced quality thanks to state-of-the-art production technology
Our investment in a new four-high rolling mill and bell annealing furnaces underscores our commitment to innovation and the use of modern manufacturing equipment. The rolling mill, equipped with a twin-drive system, features state-of-the-art digital drive and control technology. In addition, the roll gap control and strip tracking systems have been designed and optimized for rolling asymmetric thickness profiles. Celso Tadeu Bielskis, project manager and Head of Maintenance at Waelzholz Brasmetal, explains the specific benefits:
During the rolling process – particularly in the case of spring steel and steels for hardening and tempering – the rolling parameters change dynamically across the length and width of the strip. Our new mill’s advanced roll gap control system responds to these variations in real time. This allows us to achieve extremely precise thickness tolerances, ensuring optimal process efficiency and workability for our customers.
By installing the new equipment, Waelzholz Brasmetal aims not only to align its production capacity with existing market potential, but above all to further improve the quality of its steel products. With state-of-the-art equipment, precisely defined process parameters, and perfectly coordinated production stages, we meet the highest standards when it comes to thickness tolerances, flatness, and the shape and alignment of our steel materials. In the context of these quality enhancements, our focus is on all specialty products in the automotive, industrial, cutting tool, and agricultural machinery sectors.
But the newly installed bell annealing furnace also offers another technological advantage, Bielskis reports: “The new furnace is electrically heated and uses renewable energy, allowing us to carry out the annealing process with minimal carbon emissions.” And Zelit adds: “The modern bell annealing furnaces therefore support our efforts to manufacture low-emission products.” It also helps that much of Brazil’s electricity is generated from renewable hydropower, allowing the facility to operate with an extremely low carbon footprint.
Capacity expansion in three phases
The company plans to install and bring the new systems online in three phases. By May 2026, the new rolling mill and two of the six new annealing furnaces are scheduled to go into operation. The rolling mill has already been installed in its newly constructed building, which means the first coil will be able to run through the new system in early 2026. At the same time, the first bell annealing furnace is being installed and brought online.
The site then plans to add four more annealing bases along with a slitting line and a packaging system. This will complete the full capacity expansion, enabling the site to supply the market with the targeted 33,000 tons of additional cold rolled steel strip.
Strengthening Waelzholz’s São Paulo site
The new equipment will not only strengthen the site’s technological foundation but also significantly boost its local competitiveness. Zelit explains: “Across the Waelzholz Group, our goal is to offer customers consistent quality standards worldwide. The new systems will enable us to manufacture specialty products at our São Paulo site in line with our global standards of quality.”
The scale of this investment also underscores its importance for the site’s development – it represents the largest single investment in the history of Waelzholz Brasmetal. Zelit adds: “Through this investment, the Waelzholz Group’s Executive Board has sent a clear signal, underscoring its confidence in the potential of the São Paulo site and the local market.”