Brazil-based Gerdau is considering replacing its 60 metric ton (mt) capacity furnace at its Chilean unit with a 90 mt furnace, essentially increasing annual steel production capacity at the mill from 520,000 mt to 800,000 mt. Gerdau is also planning on constructing a rolled steel plant in Chile with an annual production capacity of 400,000 mt.
Plans for the $240 million investment to boost capacity and steel ingot production capacity originated in 2008, but were put aside after the global economic crisis. The project has an estimated construction date of about 2012-2015, and if approved by Gerdau's executive board by year's end, the project could begin in January 2012.