Gerdau Ameristeel to upgrade its facility

Gerdau Ameristeel to upgrade its facility

According to recent news in the market, Gerdau Ameristeel is planning to upgrade its facility through establishing a new electricity substation and a power line at its Tennessee plant. The investment is planned to be around $4.7 million, apart from the planned warehouse worth $7 million. The new power line, increasing the capacity of the mill by 10% will enable the mill to operate at full capacity. The cost of electric substation and the power line will be shared among Gerdau Ameristeel, the state, Knoxville Utilities Board (KUB) and Tennessee Valley Authorities (TVA). KUB and the state will fund $3 million and $200'000 respectively. The remaining part of the investment will be funded by the company and TVA. The line is scheduled to be completed in a year.