Gerdau launches additional $67 million capital investment for Monroe, Michigan, steel mill expansion
Second major commitment of resources will increase capacity and modernize the mill
Gerdau Special Steel North America, a leading special bar quality (SBQ) producer, launched a second phase of capital investment at its Monroe mill, Michigan. Gerdau is investing the additional $67 million to expand and modernize the rolling mill in Monroe as part of an ongoing capital investment program. This round of investment will include installation of new top-of-the-line equipment and major upgrades of existing rolling mill facilities. With this investment, Gerdau plans to add a new walking beam reheat furnace and four additional rolling mill stands. The existing rolling mill facilities will also undergo improvements to control systems, bundling and packaging systems, bar cooling beds and thermal mechanical cooling systems. The capital project is to commence immediately and will be completed by the second half of 2013.
The investment follows close on the heels of a 2010 allotment for Monroe, which also totaled $67 million, to upgrade and expand facilities including a new caster and vacuum degasser. This project is part of Gerdau’s plan to bring Monroe’s production capacity to more than 800,000 tons per year. This Monroe capital expenditure is part of an overall investment plan announced in May 2011 and designed to increase the installed capacity of Gerdau’s special steel mills, located in Monroe (Michigan), Fort Smith (Arkansas), Jackson (Michigan) and St. Paul (Minnesota). Gerdau is also currently conducting a study to determine the potential market readiness for an entirely new SBQ production facility somewhere in North America.
“Our continued capital investment plan for the Monroe mill is a result of our confidence for continued recovery and growth of North American markets, as well as our continued commitment to the local community,” says Gerdau CEO Andre Gerdau B. Johannpeter.
In addition to increasing the overall capacity of the facility, this round of investment will offer Gerdau’s customers improved bar surface quality, increased reduction ratio, better bundling and packaging and improved decarburization control.
“This expansion and modernization will position our mill to meet the growing demands of our customers and contributes to the continued development of the Monroe community”, says Jack Finlayson, president, Gerdau Special Steel North America.
Gerdau Special Steel North America operates steel manufacturing plants in Michigan and Arkansas with steel processing plants in Michigan, Indiana, Wisconsin and Ohio. Gerdau Special Steel is a wholly owned subsidiary of Gerdau.
Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. With over 45,000 employees, it has industrial operations in 14 countries - in the Americas, Europe and Asia - which together represent an installed capacity of over 25 million metric tons of steel per year. It is the largest recycler in Latin America and around the world it transforms, each year, millions of metric tons of scrap into steel, reinforcing its commitment to sustainable development in the regions where it operates. With more than 140,000 shareholders, the Company is listed on the stock exchanges of São Paulo, New York and Madrid.