Gustavo Werneck, CEO of Brazilian steelmaker Gerdau, has divulged that the company has postponed its decision to build a special steel plant in Mexico due to the US decision to impose 25 percent additional tariffs on all steel imports without exceptions and exemptions, according to media reports.
Mr. Werneck stated that, currently, the company is reevaluating the project with a production capacity of 600,000 mt per year, which would largely serve the US automotive industry. He said Gerdau was supposed to reach a final decision by late last year, though the decision was pushed back to July this year. According to the Gerdau official, cancelling or going ahead with the project in phases, or increasing its production in the US, are on the table.
In the meantime, Mr. Werneck pointed out that the company expects to benefit from the US tariff decision since it has production facilities in the country, which would increase its profitability in the region.
