Gerdau (GGBR4) announced the beginning of the feasibility analysis for potential investment in the construction of a greenfield unit for the production of special steels in Mexico, with a capacity of approximately 600 thousand tons per year.
The decision to expand its operations reflects the optimistic outlook for the local automotive industry and the nearshoring movement in the United States, aligned with the needs of major players in the automotive chain in the region.
According to Gustavo Werneck, CEO of Gerdau, this decision reaffirms the company’s commitment to offering innovative steel solutions to its customers, including the automotive industry. The company is attentive to opportunities that can add value to its portfolio, seeking markets aligned with its ambitions. The Mexican market presents ideal characteristics for this expansion, with important automotive companies expanding their operations to the country.
Gerdau (GGBR4)
The location of the new unit is still being evaluated, but it is possible that it will be in the central region of Mexico, where Gerdau already has operations for the production of long steel. The project will be submitted for approval by the company’s governance bodies and, if approved, will feature modern and sustainable technologies, using scrap metal as a source of raw material to ensure low carbon emissions.
The company also announced the suspension of its operations in the state of Rio Grande do Sul due to heavy rains in the region, prioritizing people’s safety. The company is offering support to affected employees and making donations to nearby communities, including food baskets and hygiene kits.
The company
Gerdau is a Brazilian multinational company that operates in the steel sector, being one of the largest steel producers in the world. Founded in 1901, in Porto Alegre, in the state of Rio Grande do Sul, the company has a long history in the production of long and special steels, used in various industry segments, such as civil construction, automotive, agriculture, energy, among others.
With operations in several countries, Gerdau has industrial and sales units in different parts of the world, including North America, South America, Europe and Asia. In addition to steel production, the company is also involved in activities related to iron ore mining, scrap metal recycling and manufacturing of steel products.
Throughout its history, Gerdau has sought innovation and sustainability in its operations, investing in modern technologies and responsible practices. Its global and diversified operations make it one of the leaders in the global steel market.
