Gerdau to invest in Rio wire rod mill
Gerdau will invest USD 1.5 billion to expand its wire rod and rolling mill in Rio de Janeiro. The project will more than double capacity at the company’s Cosigua mill in Santa Cruz, an industrial compound in Rio. The 40-year-old plant generates rods, bars and other steel products for the construction industry. The investment will be split into two phases; the first phase, to take place through 2013 will include upgrading the rolling and wire rod output capabilities. Another similar mill will be constructed in a second phase between 2014 and 2016. The expansion in Rio comes as a result of the surge in demand for steel in Brazil. The Cosigua upgrade program involves a 50% increase in crude steel capacity that is expected to reach 1.8 million mt, along with the assembling of the wire rod and rebar rolling processors. Presently, Cosigua has an installed capacity of 1.4 million mt/yr.