Gerdau S.A. officially inaugurated the expansion of its hot rolled coil (HRC) production capacity at the Ouro Branco mill in March 2025. This significant operational milestone is part of Gerdau's strategy to enhance its product portfolio in Brazil and increase its share of flat steel offerings. The expansion is designed to provide higher-value-added products to the market.
The expanded HRC mill is projected to contribute an additional 100,000 to 150,000 tonnes of production in 2025. Full ramp-up of the new capacity is anticipated in 2026, which will further solidify Gerdau's position in the Brazilian steel market. This investment addresses the company's current demand for HRC, which often required purchases from competitors.
This strategic investment, valued at approximately $400 million for the new hot-rolled coil line, is expected to replace third-party purchases and leverage cost advantages from the upcoming Miguel Burnier mining project. The increased capacity and focus on higher-value products are critical for improving profitability and strengthening Gerdau's competitive moat in Brazil. The project also aligns with Gerdau's commitment to green steel production.
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