Usiminas Mecanica, a subsidiary of Brazilian flats steelmaker Usiminas, will start maintenance in April at a blast furnace at Gerdau’s Ouro Branco mill, located in the state of Minas Gerais, according to a media report from Valor.
SteelOrbis anticipated the contract in a previous report, but Usiminas Mecanica declined to comment at the time and Gerdau did not respond to a request for comment.
The media report did not name which blast furnace would be repaired, but an estimated 800 people will reportedly be hired for the maintenance from April to August.
Valor said Usiminas is mulling disinvesting from Usiminas Mecanica, however, it did not explain if the investment would actually mean an asset sale.
The Ouro Branco mill is Gerdau’s largest mill in Brazil, with a 4.5 million mt/year crude steel capacity.