Gerdau Group to invest another US$ 400 millions in Brazil

A new plate mill with an annual installed capacity of 870,000 tons is to be built at a Gerdau Group plant inside the country

The Gerdau Group will invest US$ 400 million in one of its existing Brazilian plants for the installation of a new plate mill with operations geared towards the production of flat steels. Viability studies defining the optimal location of the new expansion site are currently being completed. The equipment will have an annual installed capacity of 870,000 tons and is expected to go into operation in 2010. The new mill will also generate over 200 new jobs. The Gerdau Group currently manufactures flat steels in Peru (Siderperu) and the United States (Gallatin joint venture). Since 1971 the Gerdau Group has sold flat steels inside of Brazil using manufactured by third party companies. These third party products were sold through Comercial Gerdau, the largest distributor of steel products in Brazil. The new plate mill products will be sold in the domestic market as well as exported, following the internationalization strategy the Group has been developing. Flat products are used for construction, manufacturing of heavy equipment (machinery and tools), producing medium and large seamed tubes (gas pipelines for the petrochemical industry, ore pipelines, etc.) and ship building. Demand for all of these markets are expected to increase both domestically and globally over the next few years. “In Brazil we are expanding our experience in flat steels from sales to manufacturing, with the purpose of providing better services to our clients by offering them a more comprehensive product line”, says Claudio Gerdau Johannpeter, the Gerdau Group COO.
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