CRU
May 9, 2024
CRU: Gerdau mulls new steel mill in Mexico
Written by CRU
Brazil-based Gerdau has announced it will carry out a feasibility study into the greenfield development of a 600,000 metric-ton-per-year (mt) special steel plant in Mexico. The driver is a positive outlook for the country’s automotive industry and the near-shoring movement in the US.
“We are always looking for opportunities that can add value to our portfolio, observing future consumption trends, and markets that are aligned with our ambitions,” said CEO Gustavo Werneck.
“Today, the Mexican market embodies the characteristics we seek for sustainable business expansion. Major players in the automotive industry, including Gerdau’s current clients, are expanding their operations across Mexico, which is becoming one of the most important producers of automotive parts.”
Local media quoted him as saying the new mill would require an investment of between $500-600 million.
The company is still assessing locations, particularly in central Mexico where it already produces long steels. Gerdau also operates two special steel mills and two downstream plants in the US.
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