Brazil steelmaker Gerdau laid off 120 workers at its Usiba mill, in Bahia state’s greater Salvador area, according to a local union.
The union of the metal and mining workers of the state of Bahia said the workers received the notice last week. Gerdau dismissed the workers as a result of a halt in the plant's rolling mill area. Gerdau said the action was taken due to the company’s need to optimize activities in the long steel sector, given the current challenges in the local steel industry.
As a result of the layoffs, Gerdau will transfer output to other mills.
The steelmaker clarified the areas of cutting and bending of steel will continue operating and clients should continue being served as usual.