If plans indicate commercial viability for the new facility, construction will begin in 2025.

Gerdau's plans to produce specialty steels in Mexico may require investments of between US$500 and 600 million, and the company estimates that it will complete studies for a possible decision on the construction of the new steel plant by the end of this year.

"If we take into account other investments (...) the market estimates that a steel mill like this needs investments of US$500 million to 600 million," Gerdau CEO Gustavo Werneck told reporters this Friday.

He added that a projection on the investment that the company will make in the new steel mill will be determined at the conclusion of the study.

Gerdau had previously announced the start of studies for the construction of a special steel plant with a capacity of 600,000 tons per year in Mexico.

Werneck said if plans indicate commercial viability of the new facility, construction will begin in 2025.

According to the company's financial vice president, Rafael Japur, the Mexican market for special steel consumes 1.2 million tons per year, of which 70% is currently supplied through imports.