The Brazilian steel producer, Gerdau, announced that it has entered an agreement with Sumitomo Corporation and The Japan Steel Works Ltd. to acquire, respectively, 39.53% and 1.74% of the capital of Gerdau Summit Aços Fundidos e Forjados S.A.
With an acquisition price estimated at $32.6 million, Gerdau will assume the total capital of Gerdau Summit.
Located in Pindamonhangaba, state of São Paulo, Gerdau Summit has a 40,000 mt per year production capacity of cast and forged steel products, chiefly to produce rolls and shafts to be used in the steel, aluminum, sugar and ethanol, and energy sectors.
According to Gerdau, the acquisition is expected to be closed in early 2025 and is in line with its strategy to “generate greater synergy between its businesses and offer higher value-added products and services to its customers”.
