Sipar pumping US$22mn into new furnace

Argentine steelmaker Sipar, based in Santa Fe province in the east of the country, plans to invest US$22mn in a new furnace at its industrial complex in Greater Rosario, a company official confirmed to BNamericas. The new furnace is expected to be operating by the end of 2004, allowing the company to produce billets to make finished products such as bars, wire and wire rod for the construction and fabrication sectors. At the same time, Sipar will be able to cut its freight and storage costs, as up to now the company has been receiving billets from Argentine steelmaker Acindar or Brazil's Gerdau. Porto Alegre-based Gerdau (NYSE: GGB) owns 38.2% of Sipar, and took a stake in the company in 1998. The rest of Sipar is held by its founding families - Censabella, Mosconi and Giovagnoli.