Environmental management

Care and respect for the environment are fundamental parts of the activities of the Gerdau Group. In 2006, investments in the area totaled US$ 78.8 million, up 2.6% on 2005.

The Environmental Policy is aimed at establishing practices that ensure that the needs of environmental conservation and social development are met. It seeks the ongoing improvement of processes based on sustainability criteria, and establishes that the responsibility for the Environmental Management System is shared among all employees. The Environmental Policy also guarantees the functioning of environmental protection technologies, the fulfillment of environmental legislation requirements, the planned treatment of potential sources of impact on the air, water and soil, and the investment in projects for the reduction and reuse of industrial by-products.

 

Environmental Management System (EMS)

The Environmental Management System guides the analysis of thousands of industrial activities in all Gerdau mills. Under development since 1999, it is in line with the ISO 14001 standard.

Its aim is to ensure comprehensive process monitoring, from the use of raw materials through to industrial steps, product distribution and appropriate treatment of by-products. Constantly evolving, the system was reformulated in 2006 to include the standardization of environmental indicators in all Gerdau facilities.

ISO 14001

Currently, 20 units have ISO 14001 environmental certification. Certification is underway at all Gerdau Group operations.

Air

One of the environmental impacts resulting from steelmaking is the emission of solid particles into the atmosphere. With the aim of reducing these emissions, the Group makes use of efficient dust removal systems, consisting of equipment to filter out the particles. This filtered material is a by-product that can be used in other sectors of the economy. In this way, the Gerdau Group reaffirms its commitment to seeking more sustainable solutions for its activities.

In 2006, the rate of CO₂ emissions was 593 kg per metric ton of steel produced. These emissions are well below the global steel industry average of 1,700 kg per metric ton, according to recent data from the International Iron and Steel Institute (IISI). The Gerdau Group continually seeks to implement improvements to decrease CO₂ emissions. These initiatives include replacing oil with natural gas in the heating furnaces, increasing the use of alternative energy sources, continuous technological upgrades and using scrap as the main raw material to manufacture steel.

Water

During the production of steel, water is used in large quantities to cool equipment and products. Over the years, Gerdau has sought to optimize the use of this increasingly scarce natural resource.

By means of new technologies and increased awareness, the Group has reduced the uptake of water from 46 million cubic meters to 44 million cubic meters in 2006. The level of reuse of this water in the production process was 97.3% in 2006.

Raw materials

The Gerdau Group is one of the largest recyclers in the Americas, reusing 10.4 million metric tons of steel scrap per year. In 2006, 69.6% of the Group’s steel production was based on this input, against 68.6% in 2005. The consumption of scrap grew 8.8% in 2006 as compared to 2005.

Some of Gerdau’s largest facilities have mega shredders, which are capable of processing 1,200 vehicles per day, transforming them into small pieces of scrap.

Use of scrap by the Group’s operations brings benefits that include reduced CO₂ emissions, optimization of processes, lower energy consumption, more competitive costs and greater productivity. For society, the strengthening of the scrap collection and processing network results in more jobs and income for thousands of citizens, besides contributing to a reduction in the volume of waste sent to landfills.

In order to reinforce the use of scrap in its industrial processes, the Group has its own network for the collection and processing of the material, with seven facilities in Brazil and a further 17 units in North America.

By-products

Together with a number of research centers, the Gerdau Group carries out studies to expand the use of the by-products of its industrial processes by a range of economic sectors, including steelmaking itself. These materials are used in road paving, cement, plastics and pigments, among other applications.

In 2006, the percentage of by-product reuse was 76.7%, close to the 80% achieved in 2005. The slight reduction was due to the lower level of reuse in the units incorporated into the Group in 2006.

The Gerdau Group also ensures that non-recyclable by-products are stored or sent to landfills in an appropriate manner. In 2006, these materials totaled 360.5 kg per metric ton, compared to 356.1 kg in the previous year.

Biodiversity

Preserving the greenbelts surrounding its mills is one more part of the Gerdau Group’s commitment to promoting sustainability. In 2006, out of a total area of 17,127 hectares owned by the company, 1,735 hectares were devoted to legal reserves or permanent protection areas and a further 4,499 hectares to the maintenance of native forests.

Energy

Reducing consumption and developing new energy sources are two of the major challenges for the steel sector. Alternative energy sources such as gas derived from organic landfills in place of natural gas and the production of gas through the combustion of old tires are examples of the significant advances made by Gerdau in the ongoing search for more sustainable practices.

In 2006, the Group used 564 KWh per metric ton of steel produced, slightly less than the 570.7 KWh recorded in the previous year.

Environmental education

In order to encourage commitment in its employees towards the environment, the Gerdau Group holds environmental awareness campaigns, lectures and specific courses. In 2006, 18,000 employees participated in 45,000 hours of training.

 
 

Note: The figures in this section do not include Sidenor, Siderperu and the Gallatin Steel joint venture

topo ▲