Brazilian steel distributor Açotubo plans to invest BRL 23mn ($4.34mn) to build a pipe distribution facility in São Paulo.
According to local media reports, the facility is aimed towards improving Açotubo’s operations, inventory control, and logistics. While the company did not disclose the actual volumes of steel pipes estimated to be stored in the building, the company’s industrial manager Marcelo Pereira said that the new facility would increase the firm’s capacity to store steel products by 50pc.
The distribution center will be built over a 7,000 square meter area. The company has six divisions; tubes and steel, connections, drawn and parts, stainless steel, integrated solutions, and anchoring systems, according to the Açotubo website.
Brazil’s crude steel production increased by 3.5pc to 2.59mn mt in July from 2.5mn mt in the same month last year, according to the Brazilian Steel Institute (Aço Brasil). Long steel production increased by 10.6pc to 809,000mt in July this year, from 731,000mt produced in July the prior year.