Facebook
Delicious
Digg
Yahoo
MeneameBrazilian steelmaker Gerdau (NYSE: GGB) has set a capex budget of 9.5bn reais (US$5.2bn) for the 2010-14 period, CEO André Gerdau Johannpeter said Thursday during a conference call.
The previous 6.3bn-real capital expenditure program was increased due to the strong recovery in demand, he said.
Johannpeter said 80% of the investments will be made in Brazil, primarily in Minas Gerais state.
The executive highlighted a 1.75bn-real investment in a 1Mt/y heavy plate mill in Ouro Branco that was announced by Gerdau in late October. The company expects the mill to start operating in 2012. Johannpeter said that there is a strong possibility the mill could be expanded in the future.
Also at the Ouro Branco unit the company will invest 100mn reais to expand production capacity of a structural shape rolling mill to 700,000t/y from the current 540,000t/y.
The idea is to supply steel for the construction of stadiums for events such as the 2014 World Cup and 2016 Olympics, and also pre-salt oil drilling projects off the southeastern coast of Brazil.
Porto Alegre-based Gerdau is the largest producer of long steel products in the Americas, and outside Brazil has a presence in Argentina, Canada, Chile, Colombia, Dominican Republic, Guatemala, India, Mexico, Peru, Spain, United States, Uruguay and Venezuela.
0
Comentarios