Steel output grew 13.9% in relation to 2005, which
is above the world average of 8.8% for the sector.
This growth was driven mainly by world economic
growth and by the acquisition of new companies
The world steel market set another production
record in 2006 – 1.2 billion metric tons, a volume
8.8% higher than that recorded in the previous year.
Global production grew 65.3% in one decade and
45.7% in the last five years, due mostly to a strong
demand in China and other Asian countries.
Steel production at the Gerdau Group grew above
the global average in 2006. The Group recorded
a growth 13.9% higher than in 2005, reaching a total
of 15.6 million metric tons. This resulted from global
economic growth, the consolidation process of the
steel companies in Peru and Spain, and the sales
efforts made to gain market share.
A sum of US$ 2 billion was invested during the year,
of which 50% went towards acquisitions of new
companies and the remainder towards expanding
production and updating technology in the existing
units. These investments enabled the Gerdau Group
to boost its production capacity by 16.7%, from
16.5 million to 19.2 million metric tons. An even
higher growth of 28.6% was recorded for rolled
products, with annual production reaching 17 million
metric tons.
Investments for the next three years (2007-2009)
should total US$ 4 billion. This sum will be
allocated to increasing production capacity and to
the technological modernization of existing units,
and does not include investments in acquisitions.
Business Operations
The Gerdau Group’s activities are divided into five Business Operations:
• Long Steel Brazil
• Specialty Steel (Brazil and Spain)
• Açominas (Brazil)
• South America (Argentina, Chile, Colombia, Peru and Uruguay)
• North America (Canada and the United States)
The Group has 231 industrial and commercial facilities,
four joint ventures and one associated company.