In 2006, the Gerdau Group moved into the Peruvian market, acquiring majority control of Siderperu, the country’s largest steelmaker. Siderperu manufactures long steel (80%) and flat steel (20%).

The Group acquired 83.3% of the company's capital stock, the majority belonging to the Peruvian government, which finalized the privatization operation. The total cost of the acquisition was US$ 203.1 million, including a net debt of US$ 102 million.

In assuming control of Siderperu, the Gerdau Group committed itself to the modernization of the steel production processes. As agreed with the Peruvian government, at least US$ 100 million will be invested in the mill over the next five years.

Located in Chimbote, Siderperu has boosted its annual production from 350,000 to 400,000 metric tons by means of efforts to improve management, which were begun by the Gerdau Group starting in the second half of 2006.

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