Gerdau Special Steel North America, a leading special bar quality producer, launched a second phase of capital investment at its Monroe, Michigan mill.

Gerdau is investing the additional USD 67 million to expand and modernize the rolling mill in Monroe as part of an ongoing capital investment program.

This round of investment will include installation of new top of the line equipment and major upgrades of existing rolling mill facilities. With this investment, Gerdau plans to add a new walking beam reheat furnace and four additional rolling mill stands. The existing rolling mill facilities will also undergo improvements to control systems, bundling and packaging systems, bar cooling beds and thermal mechanical cooling systems.

The capital project is to commence immediately and will be completed by the second half of 2013.

The investment follows close on the heels of a 2010 allotment for Monroe, which also totaled USD 67 million, to upgrade and expand facilities including a new caster and vacuum degasser.

This project is part of Gerdau’s plan to bring Monroe’s production capacity to more than 800,000 tons per year.

Mr Andre Gerdau B Johannpeter CEO of Gerdau said “Our continued capital investment plan for the Monroe mill is a result of our confidence for continued recovery and growth of North American markets, as well as our continued commitment to the local community.”

In addition to increasing the overall capacity of the facility, this round of investment will offer Gerdau’s customers improved bar surface quality, increased reduction ratio, better bundling and packaging and improved decarburization control.