$62,100,000 Capital Improvements
Increase Shipping Capacity to 620,000 tons

Gerdau MACSTEEL-MI New baghouse EAF upgrade Ladle Met. Furnance Electro-magnetic stirring Add two rolling mill stands New cooling bed with automated bar handling Expand Heat Treatment

Gerdau MACSTEEL - AR New baghouse EAF transformer upgrade, Oxy/fuel burners, computers Improve EMS Increase RCC met. height Hot eddy current inspection

MAC-AR increased capacity from 340,000 tpy to 375,000 tpy MAC-MI increased capacity from 210,000 tpy to 245,000 tpy Phase III is in the ramp up stage and will achieve its objective of allowing us to make 620,000 tpy of high quality engineered steel bars while meeting the new Clean Air Act requirements. Over $35M has been invested in MAC-MI Over $27M has been invested in MAC-AR Huge new bag-houses have been erected at each plant to thoroughly clean up any emissions from the steel-making process. The Ladle Metallurgy Furnace at MAC-MI and new EAF transformers will achieve total plant compatibility in high volume bearing quality production. The addition of two additional rolling mill stands and automated product finishing line at MAC-MI has resulted in improved efficiency, higher reduction ratios and bevel fround bar ends. Foerster "Hot Eddy Current Inspection" is being installed and evaluated at MAC-AR to provide 100% surface inspection and classification. This will also improve the utilization of the cold circoflux inspection units. Caster metallurgical height is being increased at both plants to improve solidification and make even more sound centers.

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