The company will spend approximately $10 million to restart operations at the mill.
SEATTLE (Scrap Monster): PortoAlegre, RS, Brazil-headquartered leading steelmaker Gerdau announced that it plans to restart an electric arc furnace (EAF) steel mill located in Guaira, Brazil. Earlier, the company had decided to resume activities at its Mogi daz Cruzes specialty steel mill during H2 this year.
The company will spend approximately $10 million to restart operations at the mill. The restart is scheduled for the second half of the current year. Gerdau cited improved steel demand in Brazil as the reason behind the restart. Gerdau expects to generate 300 new job positions.
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Marcos Faraco, vice president, Gerdau noted that it plans gradual resumption of operations at the Guaira mill. It will adjust the mill’s production volumes based on evolving domestic steel market demand. The company shared optimistic outlook on the bright future of the Brazilian domestic steel market. The resumed production at the mill will help Gerdau to meet the growing demand for long steel in Brazil and optimize the supply of steel products to customers across the country.
According to the company, the Guira EAF minimill, located in the state of Sao Paulo, has annual crude steel production capacity of approximately 420,000 tons per annum. The mill, which produces steel billets, has been on hibernation since 2014. Incidentally, Gerdau is the largest producer of long steel in Latin America.
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