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Gerdau invests R$1.5 billion in expanding its hot coil capacity production

President Luiz Inácio Lula da Silva visited Gerdau’s Ouro Branco (MG) unit to review ongoing facility expansions and the modernization of its steel production operations. The expansion, which includes increasing hot coil capacity, represents an investment of R$1.5 billion and is part of a broader R$6 billion plan to enhance Gerdau’s footprint in Minas Gerais.

With this expansion, the coil rolling mill’s production capacity will rise from 250,000 to 1.1 million tons per year by the end of the first quarter of 2025, significantly strengthening Gerdau’s position in the global steel market.

The Ouro Branco plant, Gerdau’s largest steel production facility worldwide, has an annual production capacity of 4.5 million tons—accounting for 12% of Brazil’s total steel output. Spanning 10 million m², the site includes 5,000 hectares of preserved green areas and houses two blast furnaces dedicated to producing long and flat steel products such as rebar, wire rod, structural profiles, thick plates, and hot coils. These materials serve a wide range of industries, including construction, automotive, agriculture, energy, naval, and railway sectors.

The plant sees daily activity from more than 10,000 individuals, including employees and contractors, underscoring its critical role in Brazil’s industrial landscape.

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