Gerdau Launches New Hot-Rolled Steel Production Line to Boost Capacity

Gerdau has inaugurated a new hot rolled steel production line in Brazil’s Oru Branco, enhancing its annual capacity by 230 thousand tons to 1 million tons. The $260 million investment modernizes facilities and introduces advanced technologies. CEO Gustavo Werneck cautioned about the risks posed by increased steel imports, urging government intervention to protect domestic products.

Gerdau, a prominent steel manufacturer in Brazil, has launched a new hot rolled steel (HRC) production line at its facility in Oru Branco, Minas Gerais, according to SteelOrbis. This development is expected to meet the rising demand for steel in the region by increasing the plant’s production capacity by 230 thousand tons per year, reaching an annual total of 1 million tons for HRC. The improved capacity will bolster Gerdau’s ability to supply high-quality steel to key markets, particularly the automotive and machinery sectors.

The investment for the new production line is approximately $260 million, focusing on modernizing current production facilities and implementing advanced technologies to enhance efficiency and reduce environmental impact. However, the company’s Chief Executive Officer, Gustavo Werneck, expressed concerns regarding the potential idling of the new line due to rising steel imports from countries like China. He urged the government to adopt additional protective measures to safeguard against the influx of cheaper imported steel products.

The inauguration event featured significant attendees, including Brazilian President Luiz Inácio Lula da Silva and Vice President Geraldo Alckmin, who may signal impending governmental support for restrictions on steel imports. Moreover, Gerdau’s CEO, Gustavo Werneck, indicated that the company is contemplating increasing production capacity in the United States instead of proceeding with plans for a new plant in Mexico. This consideration follows Gerdau’s earlier announcement regarding a potential specialty steel plant in Mexico, which would have an output of approximately 600 thousand tons and require a $500-600 million investment.

In summary, Gerdau’s commissioning of a new hot rolled steel production line in Brazil marks a significant advancement in meeting regional steel demand while enhancing production capacity. However, the looming threat of increased steel imports may necessitate governmental action to protect domestic production. The presence of key political figures at the opening underscores the importance of this development for the Brazilian economy.

Original Source: gmk.center