Gerdau Laisa to invest in scrap metal

Gerdau Laisa to invest in scrap metal

Uruguayan longs producer Gerdau Laisa, a subsidiary of Brazilian steel producer Gerdau Grupo has announced that it will invest to secure scrap metal supply in order to expand its production. The company plans to invest $5 million in many areas in 2005. The company also stressed the importance of scrap in steel production as it consumes one third of the energy that is used to make the same steel from iron ore. Gerdau Laisa imports scrap metal from Paraguay as domestic availability of the subject raw material is tight.