To be a world-class international steel company: this is the challenge of the Gerdau Group. Our goal is to maintain a growth rate that is sustained by the balance between profitability and financial solidity to ensure the continuous generation of value for our shareholders.

The Gerdau Group's strategy of continuous growth, associated with a trend toward consolidation in the steel sector, has been decisive for the Group's upward movement in the ranking of the largest global producers. In only four years, the Gerdau Group has climbed 11 positions, so that today we are the 14th largest steel producer in the world, according to 2002 data supplied by the International Iron and Steel Institute (IISI).

To ensure sustainable development, the Gerdau Group has developed advanced logistics in strategic areas, from the collection of raw materials to the distribution of products to end customers, optimizing the competitive advantages in each region where the Group is present. This structure allows us to deliver our products to customers in the most efficient manner.

Following its vision of the future, the Gerdau Group strives not only to be present across a large and diverse geographic area, but also to be an organization with visible participation in the markets where it operates. The concept of being a world class company means achieving ever higher results that are sustained by a strategic focus on the customer, making use of high performance teams and process excellence.


Sustainable growth

The Gerdau Group is currently implementing a project to consolidate a single management model that will be applied at all Gerdau companies. This initiative seeks to reinforce the use of practices that integrate our corporate vision but are adapted to the specific characteristics of each operation. It is founded on three pillars: efficiency in business, customer orientation and growth within the steel industry.

This is an ongoing project and will include both current and future operations, allowing the Group to reach higher performance in even less time.


Efficient management

The Gerdau Group has always emphasized increasing the productivity and profitability of the units it operates. For example, Gerdau Ameristeel's Cambridge steel mill (Canada), Gerdau AZA (Chile), Gerdau Aços Finos Piratini (Brazil), Gerdau Usiba (Brazil) and Gerdau Açominas - Ouro Branco (Brazil) have all dramatically turned around their results.

In recent years, the Gerdau Group's leading challenge in Brazil has been to increase our stake in Açominas, today known as Gerdau Açominas - Ouro Branco, located in the state of Minas Gerais. The Gerdau Group has had a stake in the company since 1997 and since then has made a significant contribution to its management. The Group assumed control of Açominas at the end of 2001, and currently has a 92.1% stake in the company. At the end of fiscal year 2003, Açominas became responsible for all of Gerdau's steel operations in Brazil. Gerdau Açominas has made a significant contribution to improved results and growing exports.

In North America, a program is underway to improve Gerdau Ameristeel's overall performance. This project is focused on reducing costs, upgrading equipment, meeting new market demands, and providing training for employees.

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