Today, the Brazilian Gerdau group is inaugurating the expansion of the hot rolling line of its Ouro Branco plant, located in the state of Minas Gerais.
The expansion required investments estimated at $260 million, increasing the HRC production capacity from 770,000 mt to 1.1 million mt per year. The additional production will serve the local automotive and the machinery and equipment sectors.
However, according to the group's CEO, Gustavo Werneck, the new line could remain idled soon after the inauguration if imports of steel products, primarily from China, continue at the current volume levels and alleged dumping prices.
Werneck expressed expectations that the government will adopt more protective measures by the end of this month to reduce the volume of imports, in addition to the system of quotas already in force.
The confirmed presence of President Luiz Inacio Lula da Silva and Vice President Geraldo Alckmin at the inauguration is seen as an indication that the government might implement new procedures to reduce steel imports.