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Brazil Gerdau Invests US$ 1.4 Billion for Six-Fold Expansion of Siderperíº

Brazilian Gerdau company, the world's 13th largest steelmaker, wants to turn Siderperú, in Peru, into one of the largest steel mills in South America. The Brazilian company, which bought the Peruvian firm in 2006, is going to invest US$ 1.4 billion in order to achieve a more than six-fold expansion of production capacity at the mill.

By 2011, annual output should reach 1.5 million metric tons, and by 2013 it should total 3 million tons.

Located in the city of Chimbote, Siderperú has been part of Gerdau's operations since 2006, and has a current production capacity of 450,000 tons of steel. According to the CEO of Gerdau, André Gerdau Johannpeter, Peru is a strategic country for the Brazilian company, as its market shows great promise and offers lots of room for development.

Investment should be channeled into new equipment to be installed at Siderperú, and should create 2,000 new permanent direct jobs and 6,000 indirect ones. According to the executive director of the Peruvian company, Luiz Polacchini, Siderperú is going to lead the market for long flat steel, supplying the domestic and foreign markets.

Presently, Gerdau is investing US$ 122 million in modernization of the Siderperú Steel Complex, a figure higher than previously agreed upon with the Peruvian government early during the Siderperú acquisition process. Of that total, US$ 40 million are earmarked for implementation of modern technology for protecting the air, water and ground.

Gerdau is a leading manufacturer of long steel in the Americas, and an important global producer of special long steel for the auto industry. The company has 46,000 employees and maintains operations in the Americas, Europe and Asia, with a combined installed capacity for manufacturing 26 million tons of steel.

Gerdau calls itself the leading recycler in Latin America, and reuses more than 18 million tons of waste per year worldwide. With over 140,000 shareholders, Gerdau's publicly listed companies have their shares traded in the Stock Exchanges of São Paulo, New York, Toronto and Madrid.

Anba

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