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Gerdau steel is delivered with the highest levels of economic efficiency
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| • | The Gerdau Group delivers its products with the highest levels of economic efficiency, based on advanced steel-making logistics and technology. |
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| • | With this strategic vision, the Gerdau Group has developed a steel-making profile based on two production processes: market mills and integrated mills. A market mill responds to a regional market, where it buys most of its raw materials and sells its products, while integrated mills are characterized by their proximity to sources of iron ore. |
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| • | This operating structure brings technological advantages to the Gerdau Group's performance, allowing the flexibility to adapt to changes in local and international demand. |
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| • | Gerdau's market mills, responsible for 60% of its production capacity, use scrap and pig iron as their main metallic raw materials. The combined use of these two materials allows costs to be balanced and a better operating margin to be achieved. Their close links with the market enable the market mills to make productivity gains with the increased specialization of their rolling mills, meeting the needs of customers and achieving greater economies of scale. |
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| • | The Gerdau Group owns three integrated mills in the state of Minas Gerais. The greater part of this production is carried out by Açominas, which has one of the most competitive production costs in the world, as a result of its proximity to the iron ore mines, its modern industrial equipment and its transport strategy, based on rail and water transportation systems. These factors combine to make Açominas an international benchmark. |
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| • | The Gerdau Group's commercial activities are in tune with its industrial practices, and operate with a focus on specific market sectors in specific regions. The coordinated action of the two areas allows the development of innovative solutions for the civil construction, industrial, agricultural and automotive sectors. Over time, Gerdau has built a solid market base, established by means of a broad customer network and strong relationships with distribution channels. |
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