In a statement, the company said the investment includes the restart of an idled meltshop and upgrades to casting equipment and heat treat capabilities. 

“We have made investments in our special steel mills to increase productivity and meet our customers’ growing needs and demand. The new contributions reinforce our presence in the markets in which we operate and our innovative spirit, as well as our optimistic vision for the automotive and machinery and equipment sectors in Brazil, which should, in the medium and long terms, have its production levels recovered,” said Rubens Pereira, Gerdau’s vice president for special steel in Brazil.

Under the investment plan, Gerdau will restart steelmaking at its Mogi das Cruzes plant. The meltshop there was idled in March 2019, and Gerdau plans to operate it at a rate of 180,000 tons annually. 

At its Pindamonhangaba plant, Gerdau is planning to upgrade a casting machine, equipping it with improved automated process controls. Scheduled for completion in August 2022, the project is intended to improve yields and quality and allow for a greater range of products. 

Lastly, Gerdau said it will install a new annealing and spheroidizing furnace at the Charqueadas plant in Rio Grande do Sul. 

“In addition to bringing greater competitiveness, this technological update will also enable Gerdau to meet the growing demand for materials with more demanding specifications in relation to properties such as spheroidization degree, hardness and low levels of decarburization, mainly by the automotive sector,” Gerdau said.