Gerdau Launches New Hot-Rolled Steel Production Line to Boost Capacity in Brazil
Gerdau has launched a new hot-rolled steel production line in Minas Gerais, Brazil, increasing capacity to 1 million tons annually. The $260 million investment aims to meet growing demand, particularly from the automotive sector. Gerdau’s CEO warns of competition from steel imports, urging protective government measures. The inauguration drew attention from high-ranking officials, signaling potential support for these measures.
Gerdau, a prominent steel manufacturer in Brazil, has inaugurated a new hot-rolled steel production line at its facility in Oru Branco, Minas Gerais, as reported by SteelOrbis. This new line will boost the production capacity by 230,000 tons per year, achieving a total output of 1 million tons annually, catering especially to the automotive and machinery sectors.
The investment for this production enhancement totaled approximately $260 million. The initiative involved modernizing existing infrastructures and integrating advanced technologies, which are intended to heighten production efficiency while minimizing environmental impact.
Nevertheless, Gerdau CEO Gustavo Werneck expressed concerns regarding the potential underutilization of the new line due to escalating steel imports from countries such as China. He urged the government to implement protective measures against the influx of low-cost imports by the end of the month.
The inauguration event was attended by Brazilian President Luiz Inácio Lula da Silva and Vice President Geraldo Alckmin, indicating possible governmental support for new import restrictions. Additionally, Gerdau’s CEO recently mentioned the company’s consideration of expanding production facilities in the United States as an alternative to establishing a new plant in Mexico.
Last year, Gerdau deliberated on the construction of a specialty steel facility in Mexico, with a projected annual capacity of around 600,000 tons and requiring an investment of $500-600 million.
In summary, Gerdau’s new hot-rolled steel production line in Brazil represents a significant investment aimed at meeting regional steel demand and enhancing competitiveness in the market. However, challenges posed by increasing imports, particularly from China, necessitate protective measures to safeguard local production. Gerdau is also contemplating expansion strategies in the United States alongside international projects in Mexico.
Original Source: gmk.center
