Brazil steelmaker Gerdau has confirmed a 2016 start-up for its heavy plate rolling mill project at its Ouro Branco mill, in the city of same name, in the state of Minas Gerais.
In a conference call with analysts, the company’s CEO, André Gerdau Johannpeter, said the Ouro Branco heavy plate project “it still according to plan.”
“It should start-up in the second half of 2016. In the first year it will still be in the initial phase of the learning curve. We will then be better prepared to supply the market after, maybe, 2018,” the executive explained, adding he expects a “some rebound” of the local steel market by then.
Johannpeter explained the Ouro Branco heavy plate project will be a very special one. “This is a very differentiated project, because we will introduce a very modern state-of-the-art rolling mill, which will cater all different demand segments in Brazil. And so, we know for sure that even though this very difficult economic environment, we will be able to provide rolling products of high quality.”
In the call, the company’s leader also highlighted Gerdau’s expectations for its melt shop in the city of Perez, Argentina, which is being built at its Argentina’s owned steelmaker Sipar.
“It should start-up in the second half of 2016 and the focus is to supply the local market,” the company said, adding its focus is on the domestic market.
As Gerdau keeps up its main investments, the company also looks at ways to raise cash. The company has hired an auction company to sell about BRL 223 million in assets, which include sites and commercial buildings.