Gerdau has announced it will invest $1.4 billion to increase, by more than six times, the production capacity of Siderperu and make it one of the largest steel mills in South America. With the investment, steel production is to increase to 1.5 million metric tons in 2011 and 3 million metric tons in 2013. The company said new equipment will include technology to guarantee rigorous environmental protection standards.
In the first stage of the investment, Gerdau will commission a study covering evaluation for the construction and installation of the production equipment. The project is expected to generate 2,000 new direct jobs and 6,000 indirect jobs. Gerdau is currently modernizing the Siderperu mill with an investment of $122 million.