Brazilian integrated steelmaker Gerdau plans to expand its product and service offerings, according to a media report by Estadao.
CEO Gustavo Werneck told Estadao in an interview the company plans to increase services-related revenues to 20 percent the company’s overall income in a 10-year timeline.
Gerdau posted a net revenue of BRL 50 billion ($12.06 billion) in the full year of 2018. The company has yet to disclose full year results for 2019.
“Instead of just selling steel, we’ll also sell services,” said CEO Werneck. “We’ll gain market share, we’ll sell more steel and we’ll be less exposed to commodity oscillations.”
Werneck said his company has a new business division, which looks at new business opportunities, and the board "decided that 20 percent of our revenues in the next 10 years will come from businesses we don’t have yet.”