Gerdau, the Brazilian steel giant, has inaugurated the expansion of its hot rolling line at the Ouro Branco plant in Minas Gerais. The expansion, which required an investment of $260 million, will increase the plant’s HRC production capacity from 770,000 metric tons to 1 million metric tons per year. The additional production is expected to supply the automotive and machinery sectors in Brazil.
However, Gustavo Werneck, CEO of Gerdau, warned that the new line could be left idled if steel imports, particularly from China, continue at their current high levels with alleged dumping prices. Werneck expressed hope that the Brazilian government will introduce more protective measures by the end of the month to curb these imports, building on the existing quota system.
The presence of President Luiz Inácio Lula da Silva and Vice President Geraldo Alckmin at the inauguration suggests the government may take further action to reduce steel imports, offering some optimism for local producers like Gerdau.
Vietnam Steel by Hoa Sen Group
