Gerdau-owned steelmaker Sipar is expected to start production at its new mill in the city of Perez, in the greater Rosario area, by the end of 2016, said Argentinian government news agency, Telam.
The company’s start is in line with a Gerdau’s recent H2 estimate for the mill, which is expected to expand Sipar’s current 260,000 mt/year finished capacity at its Rosario rolling mill to 650,000 mt/year to meet the demands of both the domestic and the export markets.
Fernando Lombardo, Gerdau’s director in Argentina, said the local Argentinian steel market is currently operating at the limit of its long steel capacity.
Gerdau’s Sipar mill would help the local industry to expand long steel capacity.
According to Telam, Argentina has a 1.7 million mt/year long steel capacity, which could be expanded by 40 percent with Sipar.