en.Wedoany.com Reported - Brazilian ferroalloy producer Companhia de Ferro Ligas da Bahia (Ferbasa, B3: FESA3/FESA4) signed a loan agreement with the Brazilian National Bank for Economic and Social Development (BNDES) on July 7, 2026. Ferbasa will receive total credit of R$43.8 million (approximately US$8 million), specifically allocated for the construction of a new bioreductant production plant in the city of Maracás, Bahia.
The Brazilian National Bank for Economic and Social Development is a state-owned policy bank under the Brazilian federal government, established in 1952. It is the largest development bank in Latin America, providing long-term financing for infrastructure, industrial, and sustainable development projects in Brazil. Founded in 1946 and headquartered in Salvador, Bahia, Ferbasa is the largest ferroalloy producer in Brazil and the only integrated ferrochrome producer in the Americas. The company operates in mining, metallurgy, reforestation, and wind power generation, with annual revenue exceeding US$350 million, ranking among the top ten companies in Bahia.
This financing is a key initiative for Ferbasa to deepen its green industrial strategy and reduce carbon emissions. The new plant will produce "bioreductants"—an environmentally friendly material derived from plants that can replace mineral coal used in metallurgy. The total investment for the project is approximately R$44.4 million, with BNDES loans accounting for up to 98%. Of this, about R$35 million (80% of the total) comes from the "Green Industry" special loan under Brazil's Climate Fund (Fundo Clima), with a fixed annual interest rate of 7.88% and a repayment period of 120 months (including a 24-month grace period and 96 months of installment payments).
The new plant is located in Maracás, adjacent to Ferbasa's extensive planted forest area in the region (covering 5,378 hectares). The plant is designed with an annual production capacity of 20,000 tons of bioreductants, all of which will be supplied to Ferbasa's metallurgical plant in Pojuca, also in Bahia, to replace fossil fuels. Construction of the project has recently begun and is expected to be completed by December 2026. Once operational, the project is projected to create 97 direct and indirect jobs.
BNDES President Aloizio Mercadante stated that supporting the production of charcoal with lower methane emissions is an important measure to help decarbonize the Brazilian steel industry and encourage innovation and sustainable development. Ferbasa noted that the project is part of its strategy to enhance operational efficiency, strengthen vertical integration, and expand ferrochrome production capacity. The completion of this plant will further improve Ferbasa's vertically integrated chain from raw material supply to ferroalloy production, reducing dependence on external mineral coal, lowering production costs, and enhancing the company's green competitiveness in the global ferroalloy market.
