Gerdau Acominas to expand product range

Gerdau Acominas to expand product range

Gerdau Acominas, one of the major steelmaker in Brazil, announced that it plans to expand its heavy sections mill located in Ouro Branco. The project will be materialized through two stages in 2004 by SMS Meer. The company is planning to raise the mill's flexibility and product range, with this investment. The mill currently produces H and I beams, however it will be able to produce channels and angles after the expansion. The annual production capacity will stable at 440'000 tons. Gerdau Acominas has also awarded SMS to install a new wire rod mill with an annual capacity of 550'000 tons. The installation is scheduled to start in January. At the same time, Gerdau Acominas has made a $18 million deal with Margusa located in Bacabeira to acquire its total capital stock. Margusa has an annual production capacity of 200'000 tons of pig iron. Furthermore, company's second blast furnace is estimated to start production in January 2004. After this acquisition, Gerdau Acominas will be able to provide pig iron to its mills in northeastern Brazil.