The Hindu Business Line reported that Brazilian steelmaker Gerdau, which has invested around INR 2,400 crore in its India plant, is targeting the domestic automotive sector to drive up sales. It also plans to export to the US and South Asian nations in the near future.

The company entered India in 2007, through a joint venture with Pune based Kalyani Group to acquire SJK Steel Plant at Tadipatri. Gerdau Steel has now taken near total control of the venture.

Mr Sridhar Krishnamoorthy MD of Gerdau Steel India said that “The 300,000 tonne a year integrated steel plant, located in Tadipatri in Anantapur district of Andhra Pradesh, is set to be fully operational by October end.”

Mr Sridhar said that “In addition to auto, the company is also targeting transportation infrastructure, defence, energy (oil and gas pipelines), with its globally established special long steel. The domestic demand is around 4 million tonnes at present and is expected to grow at a healthy rate.”

Mr Sridhar said that “We have added new facilities such as a sinter plant, melt shop and a coke oven plant. To make the plant power sufficient, a captive unit with a capacity of 15 MW is being set up, while a 6 MW one is functional.”

Mr Sridhar said that “We are optimistic and are exploring possibilities of taking up mining. We are sourcing limestone and dolomite locally, and purchase iron ore in e-auction from Bellary mines. We can play an active role in the industrialisation efforts of both States.”

Gerdau, founded in 1901, is the 14th largest steel producer in the world with a revenue of USD 18.5 billion and 45,000 employees across five continents. It also owns iron ore mines in Brazil. In the just concluded football World Cup, the company helped in the construction and modernisation of 8 stadiums.