Major long speciality steel producer, Brazil's Gerdau Group, has announced its intention to invest about $1.4 billion in its Peruvian subsidiary Siderperú in order to expand its production capacity by more than six times over the next five years and to transform it into one of the largest steel mills in South America.
According to Gerdau's investment plans, Siderperú's annual output is to increase to 1.5 million mt by 2011, reaching three million mt by 2013.
In addition, this project will have a highly positive impact on the town of Chimbote,where the mill is located, as it is forecast to generate 2,000 new permanent direct jobs and 6,000 indirect. During the construction stage, another 4,000 positions will be created. This process will dynamize all sectors of the national economy, especially benefitting small and medium companies.
Commenting on the investment, Siderperú Executive Director Luiz Polacchini said that "on a national level, Siderperú will be the leader in long and flat steel products, supplying the internal market and exporting, with preference, to the Andean countries."
Currently, Gerdau is modernizing the Siderperú steel mill complex with an investment of $122 million, $40 million of which is to be spent for the implementation of modern air, water and soil protection technologies.