Brazilian steelmaker Gerdau plans to temporarily reduce steel production at its Pindamonhangaba plant, in the state of Sao Paulo, according to media reports.
The company laid off about 90 workers between Thursday and Friday last week, but according to union estimates, some 400 employees have left the company throughout this year.
Gerdau said the layoffs are a result of weak auto sales.
Brazilian production of autos decreased 2.3 percent year-on-year in February to 200,111 units, according to data released earlier this month by the nation’s automotive industry association, Anfavea.
According to the nation’s steel institute, IABr, domestic sales fell 15.9 percent in February to 1.5 million mt, year-on-year, and dropped 12.2 percent in the accumulated period of January and February, reaching 3.1 million mt.
The Pindamonhangaba plant has about 2,000 workers, according to a media report.