3/15/08

Aceros Arequipa board approves expansion to 1Mt/y

The board of Peruvian steelmaker Aceros Arequipa has approved the second phase of a US$280mn integral expansion plan, the company said in a statement.

Aceros Arequipa has reformulated its initial expansion plan due to recent growth in the market and its "interesting outlook for evolution," such that capacity will reach 1Mt/y, the statement said. The plan involves the expansion of the electric steel mill and rolling capacity at its Pisco plant and modernization of the rolling line at its Arequipa plant.

In addition the company plans to build a new sponge iron plant.

The works will be complete and in operation in the fourth quarter of 2009, according to the company.

Peru's second largest steelmaker, Aceros Arequipa sold 161,000t of steel products in the fourth quarter of 2007 for US$10.2mn in profits.

The company produces corrugated iron, wire, profiles and other steel products for the construction sector. In Peruvian steel output, the company is second only to Siderper├║, controlled by Brazilian group steel Gerdau

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 14, 2008

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