Brazil steelmaker Gerdau announced Wednesday it plans to form a JV with Sumitomo Corporation and Japan Steel Works (JSW) in order to meet the growing demand of the nation’s wind power sector.
According to the Brazilian steelmaker, the JV should be established in the city of Pindamonhangaba, in the state of Sao Paulo, within Gerdau’s mill in the city. The facility is expected to provide parts for wind power generation towers by 2017.
The steelmaker said the JV will invest BRL 280 million ($68.6 million) to acquire new production equipment. Gerdau should contribute with assets for the production of cylinders for the steel industry, which will be also produced by the JV company. Gerdau should provide specialty steel for the manufacturing of parts for wind power generation towers.
The JV company should have a 50,000 mt/year capacity. The capacity estimate includes parts and cylinders to be produced by the JV company.
Gerdau’s stake in the JV should be higher than 50 percent, it said, adding the deal is yet to be approved by anti-trust authorities.