Specialty Steel (Brazil and Spain)
In 2006, Gerdau acquired 40% of the capital stock
of Corporación Sidenor, the main producer of specialty
steel in Spain. The US$ 340.2 million deal included
a debt of US$ 121 million. In December, Corporación
Sidenor acquired GSB Acero for a total investment of
US$ 157 million, including net debt of US$ 14 million.
Investments in expansion, together with gains in
efficiency and quality, allowed Gerdau’s Specialty
Steel Operation to reach an output of 1 million
metric tons in 2006. This was channeled to the
automotive industry, which accounted for 80%
of the sales, and to the machinery and equipment,
petrochemical, energy and hand tools sectors,
among others.
Gerdau speciality steel is used mainly in the manufacture of auto parts;
components with strict requirements in terms of quality and safety.
Gerdau steel is found in the engines, gearboxes, steering and suspension systems of automobiles, trucks, buses, motorcycles and tractors.
The Gerdau Group is an outstanding supplier to the
international automotive chain. Gerdau products
are found across all continents and are used by
the main vehicle assembly companies in the world.
In 2006, Gerdau consolidated its position as world
leader in this sector, not only for the quality of its
steel and production technology but also for the
more than 40 research and development projects
carried out in Brazil and Spain. The development of new types of steel and efficient production
processes makes the Group a world benchmark
in specialty steel. The Specialty Steel Business
Operation has specialized technicians, facilities with
state of the art equipment, and partnerships with
universities and research centers in Brazil and
Europe to provide cutting-edge specialty steel
technology to its customers (see International
technology cooperation).
In 2006, US$ 17.9 million was invested in the
technological update of facilities in Spain.
Perspectives
In 2007, the Gerdau Group expects to continue
growing in the specialty steel sector. The Group’s
strategy will be to seek out new business opportunities,
especially in regions where the automotive industry
shows strong growth rates, such as in India, China
and Eastern Europe.
The challenge for the organization will be to maintain
competitiveness in the markets where it already
operates, either through improved industrial processes,
innovative technological solutions or the development
of new products.
top ▲