The structure of the Gerdau Group, divided into five steel-making operations, brings important competitive advantages in the commercial area. Closeness to the customer, one of the main advantages of decentralized operation, allows Gerdau to anticipate the needs and trends of the markets that consume its products: civil construction, industry and agriculture. In 2002, the Group sold 9.2 million metric tons of steel products, a growth of 23.8% over the previous year.

   Its 178,000 customers are serviced by a highly trained sales team that constantly monitors market satisfaction through systematic surveys, to guarantee the continued preference for Gerdau products. Based on this information, the sales and industrial teams act in partnership to perfect and develop solutions that increase the efficiency of our customers.

CONSOLIDATED SALES BY PRODUCT LINE

By weight

Semi-finished Long rolled products Specialty long products Drawn products Flat steel resale

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   The participation of distributors and retailers is fundamental in achieving this strong relationship, as they give substantially greater access to customers.

   The Group also makes use of e-commerce systems for on-line sales: e-Gerdau in Brazil, AZA on-line in Chile, e-Gerdau Laisa in Uruguay, and E-Z-link in North America. Gerdau also uses Vendor Management Inventory (VMI) technology, carrying out electronic management of customers' stock levels and automatically processing product deliveries when required.