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Gerdau to Replace Continuous Caster at St. Paul Facility
05/08/2012 - Gerdau plans to invest $50 million to replace the continuous caster at its St. Paul, Minn., mill. The investment will increase Special Bar Quality (SBQ) capacity by 100,000 tonnes and increase the mill’s total capacity to 550,000 tonnes.
Gerdau plans to invest $50 million to replace the continuous caster at its St. Paul, Minn., mill. The investment will increase Special Bar Quality (SBQ) capacity by 100,000 tonnes and increase the mill’s total capacity to 550,000 tonnes.
“Our capital investment plan for the St. Paul mill is a result of our confidence in the North American markets,” said Andre B. Gerdau Johannpeter, Chief Executive Officer of Gerdau.
The new caster will improve quality levels and add aluminum grain refined capabilities that are limited by the current casting equipment and practices. The company expects the groundbreaking to occur in the second quarter of 2012 and anticipates project completion by early 2014, subject to a variety of approvals.
As part of this announcement, Gerdau and USW Local 7263 have agreed to extend the contract from July 31, 2013, to July 31, 2015. The company also noted that it has received strong support from the Minnesota Chamber of Commerce throughout the evaluation process, and was offered state and local incentives from the State of Minnesota, the City of Saint Paul, and the St. Paul Port Authority.
In addition, the company has entered into an agreement with Xcel Energy that will help to enable the operations to remain competitive in the future. The agreement was reviewed by the Minnesota Department of Commerce and approved by the Minnesota Public Utilities Commission.
Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. With more than 45,000 employees, it has industrial operations in 14 countries—in the Americas, Europe, and Asia—which together represent an installed capacity of over 25 million tonnes of steel per year. It is the largest recycler in Latin America.
