Gerdau Macsteel Invests $67 Million in Mill Upgrade
SBQ producer Gerdau Macsteel has announced a $67 million capital investment program for its production mill in Monroe, Mich. The upgrades will improve the plant’s reliability and quality, as well as increase its installed capacity by 225,000 short tons through 2013.
The plan includes installation of a new caster, upgrades to the plant's melt shop and new infrastructure construction. Upgrades in the melt shop's process technology will allow the plant to meet the increasing demands of the special bar quality steel market, while increased capacity will allow it to take advantage of new market opportunities, company officials claim.
"This new capital investment program for Monroe is indicative of Gerdau's optimism over the North American market, where we are seeing a market recovery from the historical low points witnessed earlier," says Gerdau CEO Andre Johannpeter.
Gerdau Macsteel will continue to explore growth opportunities in new applications, both in the automotive and non-automotive sectors, which could lead to additional investments throughout the company's production network, he adds.
The capital investment is subject to final approval of local and state incentives offered by the Michigan Economic Development Corp. and the City of Monroe.