It is reportedly that the Brazilian steelmaker Gerdau is to invest 550 million Brazilian reals in its Pindamonhangaba plant in order to develop new type of special steel with higher cleaning content and more mechanical residence, adapting to the technological trends of the automotive sector, as well as the oil and gas sector.

The company’s statement doesn’t yet confirm whether this investment is for 2019, but it is Gerdau’s firm target to double the plant’s production of special steels from current 600,000 tons per year to 1 million tons per year.

Gerdau CEO Gustavo Werneck said this investment is strategic for the company to expand its operations in special steel product with higher value added.