SÃO PAULO Gerdau SA is reviewing its 10.3-billion-reais ($5.07-billion) investment plan for 2012 through 2016 in light of uncertain global market conditions.
"A new investment plan will be announced in February 2013," chief executive officer André Gerdau Johannpeter said during a Nov. 1 conference call.
This revision includes the companys steel and iron ore operations, including an expansion project at its Gerdau Aza operation in Chile.
The Brazilian steelmaker has been studying a project to increase crude steel capacity at Azas main works in Colina to 800,000 tonnes per year and long steel rolling capacity to 900,000 tonnes per year, representing annual increases of 280,000 tonnes and 425,000 tonnes, respectively.
However, Johannpeter confirmed that flat product investments at its Gerdau Açominas SA Works, in Brazils Minas Gerais state, continue.
Gerdau expects to commission a 770,000-tonne-per-year hot strip mill in December 2012 or January 2013, while a 1.1-million-tonne-per-year heavy plate mill is due to come on-stream in 2014.
Johannpeter didnt disclose the timeframe for the expansion project at Peruvian subsidiary Siderúrgica del Perú SAA (Siderperú). "We do not have a specific date yet," he told AMM sister publication Steel First.
The steelmaker in September announced a planned $253-million investment to install a steel rolling mill and electric-arc furnace at Siderperú (amm.com, Sept. 18).
A version of this article was first published by AMM sister publication Steel First.