GERDAU EXPANDS INVESTMENTS
IN OURO BRANCO
After recently concluding the expansion of its steelworks in the city of Ouro Branco (state of Minas Gerais)
to 4.5 million tonnes/year of crude steel capacity, Gerdau announces a new investment at this same unit: the
Company’s first hot rolled coil mill to be installed in Brazil. Therefore, two new flat steel rolling mills will be
installed in Ouro Branco, one for the production of heavy plates (as already announced) and the other for the
manufacturing of hot coils. Together, they total R$ 2.4 billion in investments, reaching an installed capacity of 1.9
million tonnes/year. The investment in these new rolling mills is supported by the Minas Gerais State Government.
In the future, the joint capacity of these two rolling mills may increase to 3 million tonnes/year.
“We are investing in order to meet the Brazilian and global markets in line with the growth trend for steel demand
in the next years. With these new rolling mills startup, Gerdau will offer to the market a new line of products from
the manufacturing of flat steel, thus, better meeting the needs of its clients”, says André B. Gerdau Johannpeter,
The main equipments have already been acquired and the startup is estimated for 2012. After the installation of
these two rolling mills, 700 direct permanent jobs will be created and indirect jobs are estimated in approximately
2,500. In addition, during the peak of construction, around 7,000 temporary jobs will be generated. Both
products, hot coils and heavy plates, target the oil, shipbuilding, civil construction (metallic construction) and
heavy equipment (machinery and tools) industries.
Around 70% out of the total R$ 2.4 billion in investments will be spent with domestic suppliers and 30% with
As previously announced to the market, in addition to these new two rolling mills, Gerdau is investing in the
expansion of its structural profiles production capacity, fr