In a conference with analysts, Gustavo Werneck, CEO of the Gerdau group, said that the original BRL 6.0 billion ($1.12 billion) investment plan scheduled for 2026 will be reduced to BRL 4.7 billion.
He mentioned that the reduction reflects suspension of additional steel capacity in Brazil, moving the focus to the 150,000 mt per year capacity expansion of the Midlothian plant in Texas, adding that the import taxes for steel products imposed by the US are modifying the steel market in the region, paving the way for expansion of Gerdau’s local operations.
Werneck mentioned weak market perspectives for Brazil, due to unfair competition of subsidized steel imported from China, adding that total steel imports in Brazil have reached a pace of 6.2 million mt per year, a volume higher than the company capacity.
In Brazil, Gerdau will focus on the expansion of iron ore production, currently limited to its own consumption, now considering the expansion of the Miguel Burnier mine, in the state of Minas Gerai, in the hope of achieving an additional 2.0 million mt per year for sales to third parties.
The company also plans the increase of scrap recovery in its Pindamonhangaba plant, in the state of São Paulo.
$= BRL 5.37 (October 01)
