Gerdau, the Brazilian steel producer, has announced that it will invest R$200 million in its Riograndense unit in Sapucaia do Sul. The funds will go towards modernizing and renovating the unit’s steel mill.
The investment will be one of the largest in the history of the plant, and will take place during its 65th anniversary since opening, aiming to support the modernisation of the steel work's facilities. Planned developments include improving the environmental and safety conditions in the steel production process, developing digital strategies, and enhancing the dedusting system. Around 400 new direct and indirect jobs will be generated as a result.
"The investment in Riograndense confirms the importance of Rio Grande do Sul for the company's business and renews our ties with the state.''Marcos Faraco, vice president of Gerdau
"The investment in Riograndense confirms the importance of Rio Grande do Sul for the company's business and renews our ties with the state. We are focused on the sustainability of the unit in the long term, preparing it to continue meeting the future demand for steel from our customers throughout Brazil", commented Marcos Faraco, vice president of Gerdau.
Activities at the Riograndense Unit's steel mill will be interrupted in February, with a return expected in early 2023, after the completion of the planned developments. The market service will remain unchanged, since the plant's lamination operations will be supplied by semi-finished products manufactured at other Gerdau plants located in Brazil.
With 1,200 employees, the Riograndense unit has an annual production capacity of 450kt and 495kt of finished products, including rebar, wire-machine, bars, chops and nails.