Brazilian steelmaker Gerdau inaugurated on Tuesday its JV with Sumitomo and Japan Steel Works (JSW) in the Brazilian city of Pindamonhangaba, in the state of Sao Paulo.
According to Gerdau, the new JV—Gerdau Summit—should invest a combined BRL 280 million ($90 million).
Gerdau Summit expects to have a 50,000 mt/year capacity and will produce parts for the wind power, sugar and ethanol and oleo and gas industries. It added it will also attend the mining segment.
Production of parts for the wind sector should start early in 2018, Gerdau said. However, Gerdau Summit is already producing forged parts for the country’s sugar and ethanol sector as well as cylinders for the local steel and aluminum industries.
Gerdau owns a 59 percent stake in the JV, while Sumitomo and JSW own the remaining 39 and 2 percent stakes, respectively.