Gerdau announces that it will resume the project for installing the heavy plate rolling mill at its Gerdau Acominas steel plant in Ouro Branco at an estimated BRR 1.75 billion. This amount is part of the global investment plan of BRR 6.3 billion announced by the company for the coming years.
The installation of the heavy plate rolling mill, which had been postponed due to the impact of the global crisis on steel consumption, will mark the beginning of flat steel production by the company in Brazil. Invitation letters containing the technical specifications of the equipment were sent out this month to potential suppliers in Brazil and abroad.
Mr Andre B Gerdau Johannpeter CEO of Gerdau said that "Demand for steel in Brazil is gradually recovering and the outlook for the coming years is quite positive, which made us decide about expanding our product portfolio in Brazil, starting with the production of heavy plates."
The heavy plate rolling mill will have an installed capacity of 1 million tonnes per year, with the possibility of future expansion. It is expected to startup by the end of 2012. The installation works, which will start in 2010 and end in 2012, will create up to 4,000 temporary jobs at their peak. Moreover, 420 new permanent jobs will be created to operate the new equipment.
The key focus of the investment is the domestic market, especially the oil industry, followed by the naval industry, construction and heavy equipment. Surplus production will be exported to other countries in Latin America.
