Gerdau to Resume Heavy Plate Mill Project at Acominas Plant

Brazilian steelmaker Gerdau (Porto Alegre, Brazil) will install a one million ton capacity heavy plate mill at its Açominas facility in the Minas Gerais state of Ouro Branco for an estimated $994 million to begin flat steel production in the country. The mill is part of a previously announced $3.6 billion global investment plan.

"The Brazilian market is presenting a gradual recovery and expectations for coming years are quite positive," said company president André Gerdau Johannpeter. "This improvement led us to decide on the expansion of our line of products in Brazil, starting with the production of heavy plates." Installation should start in 2010 and operations are scheduled for 2012. During the peak of construction, Gerdau will provide 4,000 new temporary positions. Once in operation, the mill will provide 420 permanent jobs.

The installation of the heavy plate rolling mill, which had been postponed due to the impact of the global crisis on steel consumption, will mark the beginning of flat steel production by the company in Brazil. Invitation letters containing the technical specifications of the equipment were sent out to potential suppliers in Brazil and abroad.

The key focus of the investment is the domestic market, especially the oil industry, followed by the naval industry, construction and heavy equipment. Surplus production will be exported to other countries in Latin America.

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

www.gerdau.com