Gerdau Açominas to further expand capacity

Gerdau’s board recently approved an investment to expand capacity at its Açominas works by another 500,000 tonnes per year, following the mill's recently concluded expansion from 3m t/y to 4.5m t/y, Gerdau CEO André Gerdau Johannpeter said during a conference call monitored by Steel Business Briefing.

Johannpeter said US$277m will be spent on the new project, which is expected to be concluded by 2010.

Asked by SBB whether Gerdau would be willing to produce rails with the extra 500,000 t/y of capacity, since domestic demand for the product has been increasing (see related story), the executive said output would be designated for longs steel products such as rebar and wire rod.

Gerdau’s CEO also said studies regarding an EAF longs plant in Brazil’s northeastern state of Pernambuco, as recently reported by SBB, point to an annual capacity of 500,000 t in the mill's first phase, before ultimately reaching up to 1m t/y.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: August 14, 2008