GlobalBrazilian steel company requires 500 million dollars for plant in Mexico

Brazilian steel company requires 500 million dollars for plant in Mexico

Brasilia, Brazil.- Gerdau’s plans to produce specialty steels in Mexico may require investments of between $500 million and $600 million, and the company estimates that it will complete studies for a possible decision on the construction of the new steel plant by the end of this year, according to with information published by the Reuters news agency.

“If we take into account other investments (…) the market estimates that a steel mill like this needs investments of 500 million to 600 million dollars,” Gerdau CEO Gustavo Werneck told reporters on Friday.

He added that a projection on the investment that the company will make in the new steel mill will be determined at the conclusion of the study.

Gerdau had previously announced the start of studies for the construction of a special steel plant with a capacity of 600 thousand tons per year in Mexico.

Werneck said if plans indicate commercial viability of the new facility, construction will begin in 2025.

According to the company’s financial vice president, Rafael Japur, the Mexican specialty steel market consumes 1.2 million tons per year, of which 70 percent is currently supplied through imports.

With information from Reuters.

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