Gerdau Group to invest $500 mn in Indian, Mexican subsidiaries
Brazil-based Gerdau group is planning to invest $500 million in its joint ventures in India, Mexico and the Dominican Republic, besides investing heavily to modernise and expand production of its plants in Brazil, Latin America, North America and ...
By PTI |
New Delhi: Brazil-based Gerdau group is planning to invest $500 million in its joint ventures in India, Mexico and the Dominican Republic, besides investing heavily to modernise and expand production of its plants in Brazil, Latin America, North America and Spain.
The company will invest $6.4 billion in the next three years in order to modernise and expand production of its plants in these nations to ramp up its crude steel capacity by 13.9 per cent to 28.3 million tons per year by the end of 2010, the Steel Business Briefing reported.
Of this total, 12.7 million tons per year will be produced in Brazil and 15.6 million tons in the foreign operations. The group's rolled steel capacity will increase by 18.5 per cent to 24.8 MT, of which 9.4 MT would be in its domestic units and 15.4 MT at its other mills.
"Out of the $6.4 billion budget which does not include acquisitions $1.5 billion will be spent this year, 2.8 billion dollars in 2009 and $ 2.1 billion in 2010. Gerdau also plans to invest 500 million dollars in its joint ventures in India, Mexico and the Dominican Republic," SBB said.
Last year, Gerdau invested $6.3 billion in acquisitions and the revamping of existing plants, increasing its crude steel capacity to 24.8 MT from 20 MT, it added.
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