Gerdau Ameristeel closes Perth Amboy melt shop

Over the next few weeks, Gerdau Ameristeel Corporation, one of the largest wire rod producers in North America, will incrementally cease operations at its Perth Amboy, New Jersey melt shop. The Perth Amboy has a melt shop, which converts scrap into billets, and a rolling mill, which produces wire rod and coiled rebar. After the closure of the melt shop, which will be complete by early Q4, the Perth Amboy rolling mill will continue operations at its current production level, while billet production will shift to Gerdau's Brazilian facility. The closure will lead to a $27 million after-tax charge to the Gerdau's third quarter 2006 earnings. An estimated 140 steelworkers at Perth Amboy will be laid off by next month.