The board of Brazilian steelmaker Gerdau has approved $140 million in investments to expand its Peruvian subsidiary Empresa Siderúrgica del Perú (Siderperú).
In 2008, Gerdau said that it aimed to increase Siderperú's annual steel output to 3 million mt by 2013. Gerdau is now in the midst of an expansion to 700,000 mt per year from 400,000 mt per year and, it aims to finish in 2010.
Meanwhile, Siderperú reported a PEN 160.5 million loss (US$54 million) during the first quarter of 2009, from a PEN 49.2m net profit in the first quarter of 2008, due to the lower steel prices and reduced steel demand in the domestic and exports markets.
In addition, the company registered net sales of PEN 318 million (US$107 million) in the period in question, with a decline of 12 percent and eight percent, respectively, compared to the same period in 2008 and the previous quarter.