Brazil Murilo Bertoldo 360,000-ton bar and rebar phased turnkey delivery case

Case of phased turnkey delivery of 360,000 tons of bar and rebar by SMG GROUP in Brazil

I. Project Basic Information

Customer Name: Murilo Bertoldo in Brazil

Project Location: Brazil

Industry: Steel Rolling

Construction Model: Adopted a phased, one-by-one commissioning, repeat-purchase rolling model.

Phased Indicators (total 360,000 tons):

Phase I (Basic Bar Line): 60,000 tons/year bar (Rolling Bar) production line

Phase II (Large-Scale Rebar Line): 300,000 tons/year rebar (Rebar) production line

Current Status: Both phases have been delivered to high standards and officially entered commercial production after trial operations.

II. Customer Perspective Pain Points and the Background of “One-by-One Commissioning”

As the core region of heavy industry in South America, Brazil imposes extremely stringent legal requirements on metallurgical equipment regarding technical compliance and worker occupational safety (such as NR-12 standards). From the perspective of customer Murilo Bertoldo, the main pain points are: if a large-scale production line were built with a single heavy investment, not only would complex approval hurdles be encountered, but significant financial risks would also arise. Therefore, the customer adopted a “step-by-step” strategy—first establishing a 60,000-ton bar line as a “pathfinder” and a means to recover capital; after achieving great commercial success in the first phase, they then proceeded to build a 300,000-ton large-scale rebar line. This non-simultaneous construction approach presented major challenges: when starting the second-phase, large-capacity project, how could new equipment be logically integrated with existing facilities within the limited factory premises? How could both phases ensure no interference during commissioning and trial operations while sharing spare parts and supply chain resources?

III. Our Full Lifecycle Service Solution

High-Standard Engineering and EPC Turnkey Contracting: During feasibility studies and detailed design for Phases I and II, our engineering team rigorously incorporated local South American safety and environmental regulations into both basic and detailed designs. Leveraging robust supply chain management, we overcame the logistical barriers of long-distance ocean shipping and customs clearance for heavy equipment across the Atlantic.

Compliant Complete Equipment Supply: We supplied complete sets of metallurgical equipment and precision individual components that met Brazilian local legal certifications. During the Phase II expansion, we meticulously achieved efficient integration between the 300,000-ton rebar line and the existing electrical distribution and cooling facilities from Phase I.

Benchmark-Level In-Depth Support for “Commissioning and Trial Operations”: At the completion milestones of Phases I and II, we dispatched internationally certified engineers to oversee construction installation and system commissioning. During the trial operation phases of both projects, technical experts refined performance through meticulous optimization of rolling pass designs and automated micro-tension control systems, enabling coordinated startup of the new and existing lines within the same plant site, with zero safety or compliance incidents reported during trial operations.

Lean Spare Parts and Production Operation Management: We established a unified spare parts inventory management system for both phases, utilizing cost-effective procurement strategies and reliable multinational supply chains to provide 24-hour emergency supplies. Through continuous transfer of operational expertise and comprehensive employee training, we helped the customer cultivate a local metallurgical workforce highly compliant with modern industrial safety standards.

IV. Customer Value and Social Benefits

Strategic Growth: By supporting the customer’s lean path of “one-by-one commissioning and rolling capital increases,” we helped them successfully realize a total combined steel rolling capacity of 360,000 tons per year. The customer rapidly transformed from an initial small-to-medium-sized rolling mill into a highly competitive, modern steel enterprise in Brazil, becoming our flagship example in the South American market.

Boosting High-Quality Employment: With the successive commissioning and operation of multiple phases, this project has created numerous high-standard industrial jobs locally in Brazil. Its successful launch has also strongly driven the upgrading of the local construction-related industrial supply chain, showcasing the deep-rooted strength of China’s metallurgical general contracting brand in high-standard overseas markets.