Sao Paulo, Brazil, 26 June – Brazilian group Gerdau is interested in setting up a steelworks in China, with a capacity of 1 million tons per year in partnership with a Chinese state company, Brazilian newspaper Valor Económico reported Monday citing the group’s chairman.
The chairman, Jorge Gerdau Johannpeter, also said that as a first step for the group’s entry into Asia, Gerdau had acquired 45 percent of he SJK Steel Plant, of the Kalyani group in India.
The sales contract was signed Friday after almost six months of talks with the Indian partners, for around US$71 million.
The unit has a capacity to produce 275,000 tons of liquid steel per year and this will be boosted to 1.6 million tons “over the next few years” with investments of between US$250 and US$300 million.
The group had already announced investments of US$393.5 million in acquisitions for 2007.
The Gerdau, which is the largest producer of long steel in the Americas, and has factories in Brazil, Argentina, Canada, Chile, Colombia, the United States and Uruguay.
The Gerdau group also owns 40 percent of Spanish company Sidenor and a production capacity of 19 million tons of steel per year. (macauhub)