Brazilian steelmaker Gerdau has halted crude steel production at its Divinopolis plant in the southeastern state of Minas Gerais.
The company cited the operation's loss of competitiveness and the lack of competitively priced iron ore as reasons for the decision, adding that the situation has been aggravated by rising steel imports and by unfavorable conditions for accessing international markets, which have historically been important to the plant's operations.
Divinopolis is an integrated steel mill with a production capacity of 600,000 metric tons (mt) per year, focused on long products, mainly rebar.
With the blast furnace and melt shop shut down, the Divinopolis plant will rely on feedstock from other Gerdau plants, including the Ouro Branco plant, also in Minas Gerais.
The mayor of Divinopolis, Janete Aparecida Silva, said in a statement that the closure will affect 1,000 people, including Gerdau employees and contractors, adding that the unit accounts for 15 percent of the municipality's tax revenue.
