Brazilian steelmaker Gerdau has announced this week a reorganization of its operations in the Americas.
According to the Brazilian producer, it has reduced and simplified its operations to adapt itself to the “current scenario of high competitiveness” worldwide and to allow more synergies at its customer care operations in Brazil, as well as in South and North America.
In a filing at the Brazil’s stock exchange commission, Comissao de Valores Mobiliarios (CVM), Gerdau said it will combine its Mexican as well as its JV operations in Guatemela, the Dominican Republic and Mexico under the North American business. The North American operations also include the company’s assets in the US and Canada.
Likewise, the company’s long steel businesses in Argentina, Chile, Colombia, Peru, Venezuela and Uruguay will now be part of the South American operations. Gerdau’s iron ore activities will be part of the Brazilian operations, which include flat and long steel, as well as coal and metallurgical coke in Colombia.
The only operation that wasn’t altered was the Specialty Steel operation, Gerdau said.
In the filing, Gerdau also said it will buy the remaining stakes it doesn’t yet own in Gerdau Acos Longos SA, Gerdau Acominas SA, Gerdau Acos Especiais SA and Gerdau America Latina Participacoes SA.
Gerdau will spend BRL 1.9 billion ($607 million) to buy out the remaining stakes.