Brazilian steelmaker Gerdau restarted a steel billet plant in the northeastern state of Ceara, with capacity to produce 160,000 metric tonnes (t)/yr of crude steel.
The restart of the plant, which was shut down in May 2024 for renovation, is part of Gerdau's strategy to strengthen its position as a supplier in the north and northeast as local buyers rely heavily on imports. High domestic freight costs from steelmaking hubs in the southeast discourage trade with other Brazilian mills.
Gerdau uses local mini-mills as a strategy to cut freight costs and increase its domestic product appeal.
The plant in Maracanau city now produces 12m-long billets. Longer billets reduce waste, improve lamination efficiency and boost overall plant productivity.
Billets are used to produce other long-steel products like rebar, wire rod and structural sections. Ferrous scrap is the main feedstock for billets, Gerdau said.
The company will roll the billets internally instead of selling them to third parties, it said. The semi-finished steel from the restarted plant will also feed another nearby mini-mill in Caucaia.
The company invested R200mn ($38mn) in the plant to increase effectiveness and reduce environmental impacts, it said. But its capacity remains unchanged.
