Brazilian steelmaker Gerdau has announced that it will postpone an investment to build a plant in Argentina.
Gerdau says it has put off plans to invest $524 million in a new steel plant in Argentina. Construction on the plant had been slated to start in November.
The company says that it still plans to build the plant, but due to economic uncertainties it does not yet have an estimate of how long the plans will be deferred.
According to the company's previous announcement about the investment, the new plant would be located in Perez, in the province of Santa Fe, about three miles from the existing mill of Gerdau's subsidiary, Sipar. The mill was expected to have the capacity to produce 1.1 million metric tons on an annual basis by 2016.
As SteelOrbis reported last week, Gerdau also recently announced that due to weak steel demand it will cut output at its mills in Brazil and Peru and that it is considering cutting production at its US plants as well.