Gerdau to lay off 100 workers at Pindamonhangaba mill

Wednesday, 27 March 2019 21:23:17 (GMT+3)   |   Sao Paulo

Brazilian integrated steelmaker Gerdau will provisionally lay off 100 workers at its Pindamonhangaba mill, local union SindMetalPinda told SteelOrbis.

The Pindamonhangaba mill, located in the city of same name in São Paulo state, is one of Gerdau’s specialty steel mills. It operates as a mini-mill with an electric arc furnace (EAF) and produces bars, wire rod, and special profiles. The mill has a 600,000 mt/year capacity, which should expand to 1 million mt/year, following a BRL 550 million ($139.2 million) investment announced in November 2018.

A spokesperson for the union said the provisional layoff is yet to take effect and may last between two to five months, beginning in April, the spokesperson said, adding that the layoff was due to weaker domestic demand from the local automotive sector.

“The finished bars area was the main sector affected,” the spokesperson said. The area produces steel bars for the local automotive sector.

The union spokesperson said other areas within the Pindamonhangaba mill are operating regularly.

Gerdau did not return a request for comment.

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