Brazilian steel producer Gerdau is targeting India’s automotive sector to boost sales, according to reports this week, which also indicate plans to export from the region to the US and South Asian nations in the near future.
A new 300,000 mt per year integrated steel plant, located in the city of Tadipatri, in the state of Andhra Pradesh, is expected to start operations by October this year, an executive at Gerdau Steel India said.
Gerdau entered the India market in 2007, through a joint venture with Kalyani Group. As a result, Gerdau acquired SJK Steel Plant in Tadipatri. Now, Gerdau has assumed most of the control of the company.
“We have added new facilities such as a sinter plant, melt shop and a coke oven plant. To make the plant power-sufficient, a captive unit with a capacity of 15 MW is being set up, while a 6-MW one is functional,” Sridhar Krishnamoorthy, managing director at Gerdau India told local media.
Gerdau is also looking for other opportunities in the states of Telangana and Andhra Pradesh.
“We are optimistic and are exploring possibilities of taking up mining. We are sourcing limestone and dolomite locally, and purchase iron ore in e-auction from Bellary mines. We can play an active role in the industrialization efforts of both states,” the executive said.