The facility will supply around 400 turnouts to Vale over a four-year period as part of a major project to increase the capacity of the Carajas heavy-haul line.

VAE has invested around Reais 12 million ($US 5.9m) in the first phase of the project. The 40,000m2 factory has a rail connection and is designed for rapid expansion to accommodate an increased workload.

VAE believes the plant will be in a prime position to supply switches for other major rail projects in the region, including the North-South Railway, Transnordestina, and the Forteleza metro.