Chille – The Chilean division of steelmaker Gerdau, known as Gerdau Aza, is considering a major expansion at its steelworks in Colina. Chile.
According to Hermann von Mühlenbrock, General Manager of Gerdau AZA, the company is studying an investment project valued at US$240 million, to increase the company’s steel output from 520 000 tonnes to 800 000 tonnes per annum.
It is expected to be carried out between 2012 and 2015, the project will involve replacement of the current 60 tonnes electric arc furnace (EAF) by a new 90 tonnes EAF. In addition a new rolling mill is planned with a production capacity of 400.000 tonnes per annum. This would supplement the existing unit at Colina, which has a capacity of 370,000 tonnes of sheet steel per year. Gerdau AZA operates another mill, located in the community of Renca which has a capacity to produce 100,000 tonnes of steel bars per year.
The plan is for Gerdau AZA to raise its consumption of scrap metal up to 900,000 tons by 2020. Brazil based Gerdau is the largest scrap consuming steelmaker in America, it’s main sector competitor in Chile is local steelmaker Compañía de Acero del Pacífico (CAP), which has also resumed technical studies on a major integrated steel expansion project and expects to make a decision on the matter in December.
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