Gerdau on track to improve iron ore, flat and special steel production
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During its Q1 conference call, Gerdau executives said the company plans to be self-sufficient in terms of iron ore consumption by 2014 through investments of R838 million (US$436 million). By that time, Gerdau anticipates iron ore output will increase 80 percent to 11.5 million tons. The company is still looking for partner to develop the mines, but Andre Gerdau Johannpeter, CEO of Gerdau, said that there was no rush to announce a partner and the search is ongoing.
In addition to substantially increasing iron ore production, Gerdau said that by the end of 2012, it will begin flat rolled production at its Acominas works in Brazil, and during Q1, the company approved investments to expand specialty steel production capacity in the US. Further, by 2015, Gerdau will increase steelmaking and rolled steel production capacity to 950,000 tons a year and 1.1 million tons a year, respectively.