Brazil steel firm in Peru boost

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Brazilian steel firm Gerdau is to invest $1.4bn (Â£777m) in Peru in a bid to boost production and take advantage of Brazil's construction boom.

The investment in the firm's existing Peruvian business, Gerdau Siderperu, is aimed at increasing production six-fold by 2013.

As well as meeting Peru's demand for steel the move is aimed and adding to exports throughout Latin America.

Gerdau owns 83% of Gerdau Siderperu and is Latin America's largest steel firm.

The investment is tipped to double Siderperu's labour force to 4,250 people in addition to creating some 4,000 construction jobs in the short-term.

The Peruvian arm of Gerdau currently makes some 450,000 metric tons of steel annually.