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Gerdau, Rio Government Announce Investment of R$ 2.47 billion
03/16/2011 - The state government of Rio de Janeiro and Gerdau have announced investments of R$ 2.47 billion to increase the production of steel and rolled products at Gerdau’s Cosigua mill.
The state government of Rio de Janeiro and Gerdau have announced investments of R$ 2.47 billion to increase the production of steel and rolled products at Gerdau’s Cosigua mill, located in the Industrial District of Santa Cruz.
The investments — which were announced by Gerdau Chairman Jorge Gerdau Johannpeter and Rio de Janeiro governor Sergio Cabral Filho — will help to expand this plant's steel production capacity by 50%, to 1.8 million tonnes per year. Expansion plans also call for the installation of a new wire rod and rebar rolling mill with annual installed capacity of 1.1 million tonnes. The bar and rod mill will be implemented in two phases.
"We are investing in Rio to meet the future increase in the demand for steel in Brazil, driven by the growth of the Brazilian economy and the events of the 2014 World Cup and 2016 Olympic Games, which involve not only the construction and renovation of sports venues but also the expansion of the infrastructure related to airports, hotels, energy, and telecommunications," said Johannpeter.
"Rio de Janeiro is experiencing a unique moment. We are attracting new companies and stimulating the economy of Rio de Janeiro,” commented governor Filho. “Despite the global economic crisis, we never had so many new companies being established in our State before: there were 41,986 new companies last year compared to 26,261 in 2007. We also hit a record in the generation of formal jobs in 2010: 190,000 new jobs were created. The modernization of the public administration enabled the tax recovery of Rio de Janeiro.
"We are investing in Rio to meet the future increase in the demand for steel in Brazil, driven by the growth of the Brazilian economy and the events of the 2014 World Cup and 2016 Olympic Games, which involve not only the construction and renovation of sports venues but also the expansion of the infrastructure related to airports, hotels, energy, and telecommunications," said Johannpeter.
"Rio de Janeiro is experiencing a unique moment. We are attracting new companies and stimulating the economy of Rio de Janeiro,” commented governor Filho. “Despite the global economic crisis, we never had so many new companies being established in our State before: there were 41,986 new companies last year compared to 26,261 in 2007. We also hit a record in the generation of formal jobs in 2010: 190,000 new jobs were created. The modernization of the public administration enabled the tax recovery of Rio de Janeiro.
“Within this context, Gerdau is announcing investments in our state, increasing its production, generating employment, and contributing to the economic and social development of Rio de Janeiro," added governor Filho.
Expansion of the plant will take place two phases. In the first phase, which will run from 2011 to 2013, meltshop production capacity will be expanded (with startup scheduled for 2012) and the new wire rod and rebar rolling mill will be installed (with initial operation to begin in 2013), with initial installed capacity of 600 thousand tonnes per year. During this phase, Gerdau will also install a new fabricated rebar facility for civil construction and a retail facility focused on the sales of steel products.
Expansion of the plant will take place two phases. In the first phase, which will run from 2011 to 2013, meltshop production capacity will be expanded (with startup scheduled for 2012) and the new wire rod and rebar rolling mill will be installed (with initial operation to begin in 2013), with initial installed capacity of 600 thousand tonnes per year. During this phase, Gerdau will also install a new fabricated rebar facility for civil construction and a retail facility focused on the sales of steel products.
In phase 2, between 2014 and 2016, the new rolling mill will reach 1.1 million tonnes of annual installed capacity. At the end of this period, the rolling capacity of the Cosigua plant will reach 2.6 million tonnes.
The investment program also involves expansion of the plant's highly efficient dust removal system to capture the solid particles generated during steel production, as well as enlargement of the industrial water treatment and recycling system. The plant currently has 3,200 filters installed in its dust removal system, which is five times more efficient than the requirements set by the Brazilian law. As a consequence of the plant expansion, the installed capacity of the equipment will increase from 1.5 million cubic meters per hour to 2.4 million.
The investment program also involves expansion of the plant's highly efficient dust removal system to capture the solid particles generated during steel production, as well as enlargement of the industrial water treatment and recycling system. The plant currently has 3,200 filters installed in its dust removal system, which is five times more efficient than the requirements set by the Brazilian law. As a consequence of the plant expansion, the installed capacity of the equipment will increase from 1.5 million cubic meters per hour to 2.4 million.
In addition, 98% of the total water used in the mill is treated inside the plant and reused, and the remaining 2% evaporates during the manufacturing process. Gerdau's concern about soil preservation is expressed by the extensive work of by-product delivery to be used by other segments of the industry or by the steel industry itself, reducing its impact on the environment. Currently, about 80% of Gerdau's solid wastes are transformed into by-products.
The company noted that all investments will meet the most stringent environmental protection standards and will include deployment of all necessary infrastructures.
Gerdau is one of the leading producers of long steel in the Americas and a leading supplier of specialty steel in the world. It has over 40,000 employees and industrial plants in 14 countries, operating in the Americas, Europe, and Asia, totaling an installed capacity exceeding 25 million tonnes of steel. It is the largest recycler in Latin America and it transforms millions of tons of scrap into steel every year worldwide.
The company noted that all investments will meet the most stringent environmental protection standards and will include deployment of all necessary infrastructures.
Gerdau is one of the leading producers of long steel in the Americas and a leading supplier of specialty steel in the world. It has over 40,000 employees and industrial plants in 14 countries, operating in the Americas, Europe, and Asia, totaling an installed capacity exceeding 25 million tonnes of steel. It is the largest recycler in Latin America and it transforms millions of tons of scrap into steel every year worldwide.
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