Gerdau investing $285.7 million to expand capacity at three mills

Thursday, 20 February 2020 23:09:59 (GMT+3)   |   Sao Paulo

Brazilian integrated steelmaker Gerdau is investing a combined BRL 1.2 billion ($285.7 million) to expand capacity at three mills in Brazil and the US by the end of this year, SteelOrbis has learned.

Gerdau said in a quarterly earnings presentation it will spend BRL 532 million ($121.2 million) to expand capacity by 400,000 mt/year at its Pindamonhangaba mill in São Paulo state for special quality bars (SQB).

The company’s Monroe, Michigan mill in the US will receive BRL 266 million ($60.6 million) in funds for a 160,000 mt/year SBQ capacity expansion.

Gerdau will also spend BRL 456 million ($103.9 million) to add a 530,000 mt/year capacity at an undisclosed mill in the US for structural sections and bars.

All three projects are part of a company’s plan to spend BRL 7 billion ($1.5 billion) in three years in Capex.

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