CANADA AND THE UNITED STATES
Performance

   Sales to the industrial and civil construction sectors totaled 3 million metric tons, an increase of 32.2%.

   The principal factor in this growth was the consolidation of the new operations in the United States and Canada.

Strategy

  Greater geographical coverage and broader product mix resulting from the new configuration of the Gerdau Group in North America led to a redefinition of the sales strategy.

  To increase commercial efficiency, four sales offices were created. Two of these operate in the sale of bars, profiles and rebar produced by the eight Gerdau AmeriSteel mills, operating within defined geographical areas: one for the United States, based in Tampa, and the other for Canada, based in Whitby.

   The other two commercial offices are linked to specific market niches that are important features of the region, and are serviced by the mill located at Perth Amboy, New Jersey (USA), and by MRM Special Sections, Manitoba (Canada).

   The Perth Amboy unit produces wire rod and rebar in rolls, while MRM Special Sections produces grader blades, smelter bars, light rails, superlight I-beams and elevator guide rails for use directly in customers' production lines, reducing their operating costs.

   The sale of cold drawn bars, welded wire mesh and nails is decentralized, with specific sales teams focused on each business sector.

   A single sales system came into operation at the beginning of 2003. Developed within the One-Stop Shop concept, it allows customers to access a larger line of products, giving greater agility in purchasing operations and better logistic structure. The waiting time for loading of trucks at the mills, an important indicator in the area of deliveries, was reduced by 25%.