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Gerdau to Build New Long Products Steel Mill in Argentina
09/12/2008 - Gerdau announces plans to invest US$ 524 million to build a new steelmaking plant in Argentina.
Gerdau CEO André Gerdau Johannpeter announced that the company plans to invest US$ 524 million to build a new steelmaking plant in Argentina. The announcement was made on Thursday in a meeting with Argentinean President Cristina Fernández de Kirchner.
The new steelmaking plant would allow Sipar Gerdau, Gerdau’s local company in Argentina, to manufacture its own steel, and more than quadruple its finished product capacity. It is to be located in Pérez, in the Province of Santa Fé, 5 km from Sipar Gerdau's current mill. The company said the new plant would meet the highest quality and technology standards.
“This new investment is vital for Gerdau's development in Argentina. We are proud of being local producers, of encouraging the generation of jobs, and of helping the Argentinean industry grow and become more competitive,” said André Gerdau Johannpeter, Gerdau’s CEO.
With the new steel plant, Sipar Gerdau’s production capacity will reach 1.1 million tonnes of steel. Because Sipar Gerdau currently buys its steel abroad, the investment will ultimately help to improve the country's trade balance.
Gerdau is targeting completion of the first stage of the new plant in 2011 with a total investment of US$ 310 million. With completion of stage one, the company will reach an annual production capacity of 650,000 tons of steel and 710,000 tons of finished long products. This compares to Sipar Gerdau’s current capacity of 260,000 tonnes of finished steel products from its nearby Rosário rolling mill.
The new steelmaking plant would allow Sipar Gerdau, Gerdau’s local company in Argentina, to manufacture its own steel, and more than quadruple its finished product capacity. It is to be located in Pérez, in the Province of Santa Fé, 5 km from Sipar Gerdau's current mill. The company said the new plant would meet the highest quality and technology standards.
“This new investment is vital for Gerdau's development in Argentina. We are proud of being local producers, of encouraging the generation of jobs, and of helping the Argentinean industry grow and become more competitive,” said André Gerdau Johannpeter, Gerdau’s CEO.
With the new steel plant, Sipar Gerdau’s production capacity will reach 1.1 million tonnes of steel. Because Sipar Gerdau currently buys its steel abroad, the investment will ultimately help to improve the country's trade balance.
Gerdau is targeting completion of the first stage of the new plant in 2011 with a total investment of US$ 310 million. With completion of stage one, the company will reach an annual production capacity of 650,000 tons of steel and 710,000 tons of finished long products. This compares to Sipar Gerdau’s current capacity of 260,000 tonnes of finished steel products from its nearby Rosário rolling mill.
The second stage of the new plant is to be completed in 2016 with an investment totaling US$ 524 million. With completion of the second stage, the company will reach an annual production capacity of 1.1 million tonnes of steel and steel products.
“Sipar Gerdau's production is intended to meet the growing demand in the Argentinean market,” ” stated Luis Pecora Nova, Executive Director, Sipar Gerdau. “These new investments will further prepare the company to respond especially to the needs of the construction and metal-mechanic industries.”
At the moment, the use of steel per person in Argentina presents attractive growth opportunities for the future. According to the Center of Steel Mills, it is estimated that the use of long steel—forecast this year at 1.9 million tonnes—will reach 2.3 million tonnes in 2013.
“Sipar Gerdau's production is intended to meet the growing demand in the Argentinean market,” ” stated Luis Pecora Nova, Executive Director, Sipar Gerdau. “These new investments will further prepare the company to respond especially to the needs of the construction and metal-mechanic industries.”
At the moment, the use of steel per person in Argentina presents attractive growth opportunities for the future. According to the Center of Steel Mills, it is estimated that the use of long steel—forecast this year at 1.9 million tonnes—will reach 2.3 million tonnes in 2013.
Gerdau’s investment is also expected to have a considerable impact on job generation. Once online, the mill is anticipated to employ over 3200 people: 700 staff, 500 outsourced, and more than 2000 indirect jobs. Construction of the new steelmaking plant, which is expected generate around 1000 jobs, is scheduled to start in November 2008.
Sipar Gerdau is a major supplier of finished long products for the construction and metal-mechanic industries in Argentina. The company operates a mill in Pérez, in the Province of Santa Fé, and has the annual installed capacity to roll 260,000 tonnes. It has 450 employees. As of late 2008, Sipar Gerdau will start investing US$ 524 million to undertake its own steel production in the country and increase its installed rolling capacity, totaling an annual 1.1 million tonnes of steel and finished products.
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