The board of Brazilian steelmaker Gerdau approved US$140million in investments to expand Peruvian subsidiary Siderperú.
Last year Gerdau spokepersons said that the company aimed to increase Siderperú’s steel output to 3Mt/y by 2013.
The company is in the midst of an expansion to 700,000t/y from 400,000t/y , which is expected to be accomplished by the end of 2010.
Antonio Carlos Goes, analyst with Brazilian brokerage SLW, thinks that Gerdau is being ambitious in its strategy for taking advantage of the crisis to find ways to expand in areas outside Brazil.
"If Gerdau is doing this it is because there is an interesting opportunity there," he said.
Siderperú is Peru’s largest steelmaker.
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