Gerdau, Latin America’s largest steelmaker, announced Thursday it has signed an agreement with Japan-based JFE Steel to produce heavy plate in Brazil in order to serve its Americas business.
The company’s move follows a recent announcement by the long steel producer that it was partnering with Japan’s Sumitomo to enter Brazil’s wind power sector.
Gerdau said the agreement will optimize the company’s learning curve at its heavy plate rolling mill, which is expected to start up operations in July this year at the company’s Ouro Branco mill in the state of Minas Gerais. Gerdau said the move marks the expanding of
Gerdau’s product line in the flat steel segment.
Gerdau’s product line in the flat steel segment.
Gerdau’s heavy plate rolling mill was initially scheduled to commence operations in late 2016, but the start-up date was brought forward with the new deal.
The strengthening of Gerdau’s flats portfolio comes as Usiminas, a major flats producer, has halted primary output at its Cubatao mill, in the city of same name in the state of Sao Paulo.
Gerdau informed JFE’s technical consultants will help the Brazilian steelmaker to “improve its technological mastery of heavy plate production, which should accelerate advances in its production processes.”
Gerdau said the technical cooperation agreement includes both Gerdau’s rolling and melt shop operations.
“Support from the Japanese [company] will be complete for the development of new products. By July, the rolling mill should be producing a complete array of gauges,” it said.