Gerdau Corsa announced details of the project to build a new plant to produce structural steel in Ciudad Sahagún, Hidalgo, Mexico. The project represents the largest private investment in the history of the organization, given the investment of US$600 million to be held by the joint venture Gerdau Corsa.

The project details were released by Gerdau CEO André B. Gerdau Johannpeter and Gerdau Corsa Manager Juan Ángel Córdova Gerdau at an event attended by the Governor of the State of Hidalgo, Jose Francisco Olvera Ruiz, Secretary of Economic Development of the State of Hidalgo, José Pablo Maauad Pontoon, and the Mayor of Tepeapulco, Hidalgo, Alberto Franco Ramirez.

The process of construction of the plant will generate around 4000 indirect jobs during construction. The new plant is expected to begin operations in the second half of 2014, at which time some 500 direct and 1,500 indirect jobs should be generated.

"Mexico is a priority market for Gerdau. The announcement of this major investment reflects the commitment and interest that exists on the part of our company in maintaining the strength of its operation in the country, ensuring it long-term and improving the standard of choice for our customers," said André B. Johannpeter.

"The proposed construction of the new plant is an important step to strengthen Gerdau Corsa’s position in the Mexican market and increase competitiveness. This investment is intended to replace current imports of structural profiles in the country, which will bring significant benefits to all parties involved in the distribution, sale and use of these products," said Córdova.

The plant’s construction area cover 90 hectacres. Initially the plant will have an annual production capacity of 1 million tonnes of steel, 700,000 of which will be rolled products. There are plans for future expansion as well.

This new facility will incorporate measures to protect the environment that reflect the vision of Gerdau Corsa to ensure sustainable development in the communities in which it operates. Some of these actions are:

• It will recycle 99% of the water used, significantly reducing the need for external feedback, and will install a system for the collection of rainwater

• Gerdau Corsa shall conduct social projects aimed at supporting sustainable development in the local community.

• The company will plant about 2,000 trees on the ground, in order to promote respect and preserve the ecosystem.

Gerdau Corsa also unveiled its new brand identity in the Mexican market. From this date, the brands of Gerdau Sidertul, Aceros Corsa and Aceros Ticoman will be identified in Mexico under the Gerdau Corsa brand, thus making the company one of the leading Mexican producers of long steel for the construction markets.

Gerdau Corsa has been present in Mexico since 2007. It has 1,200 employees working in three steel producing plants and rolling in the states of Hidalgo, Mexico City and the state of Mexico. It also has three process units and scrap collection, a rod plant and seven distribution centers located throughout the country.

The company produces rebar, rod, commercial profiles, and structural shapes. To ensure product quality, it complies with specifications of standards, both domestic and foreign. In addition, the company seeks the efficiency of its environmental practices and sustainable development of the production chain.