Gerdau foresees a total investment of 4.7 billion Brazilian Reais (886 million dollars) for the next year. Although this figure is lower compared to 2025, a significant portion of the plan is allocated to maintenance and modernization projects. Of the total investment, 2.9 billion Reais will be directed toward extending equipment lifespan and improving plant operations, while 1.8 billion Reais will support competitiveness projects aimed at increasing production and profitability.
Industry experts attribute the slowdown in investment pace to the pressure Brazilian producers face from heavy steel imports from China. This situation is pushing companies to explore new revenue streams. Carlos Daltozo, Head of Research at Tuesday Capital, commented: “Chinese steel will continue to remain in the Brazilian market. Therefore, while the outlook for producers remains challenging, revenue diversification has become inevitable.”
Within this framework, Gerdau is expanding capacity at its Miguel Burnier iron ore mine in Minas Gerais, which currently feeds its own operations. Once the expansion is complete, the company will be able to sell excess iron ore to third parties for the first time. This move will allow Gerdau to diversify its revenue beyond steel production.
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