Gerdau will invest BRL1bn ($179.6mn) to modernize and expand the production capacity at its specialty steel mill in Brazil, driven by higher demand from automotive and machinery industries.
The investments will be allocated to the steel units located in São Paulo and Rio Grande do Sul, Gerdau said in a statement on Apr 19, adding that the funding was part of the investment plan announced by the company recently.
The Mogi das Cruzes mill is expected to resume operations in the second half of the year. The plant, which has an annual capacity of 180,000mt, halted operations in March 2019.
The Pindamonhangaba mill located in São Paulo, which will begin operations in August 2022, continues investing in its new continuous casting equipment. The Charqueadas mill in Rio Grande do Sul also plans to begin operations in August 2022 and will have an annealing and spheroidization furnace for steel bars, with an annual capacity of 48,000mt.