The Brazilian steel producer Gerdau will halt production at its Maracanaú plant, located in the Brazilian northeastern state of Ceará.
The local newspaper Diário do Nordeste, quoting information from the plant’s workers union, informed that the unit will be idled for 18 months, for works destined to adapt it to produce billets in the range of 6 to 12 meters, which will serve as feedstock to Gerdau’s Caucaia plant, also located in the state of Ceará.
The investment in the Maracanaú plant is estimated at $5.4 million.
With the larger billets, the Caucaia plant will produce long products destined to serve chiefly the Latin American market.
Meanwhile, the Gerdau plants in the southeastern state of Rio Grande do Sul, Riograndense e Charqueadas, remain idled due to the intensive rains that have flooded the state.
