Açominas
Operational performance, geographical sales
diversification, a value added product mix and more
favorable international steel prices are among the
highlights of Gerdau Açominas in 2006. Gerdau
Açominas produced 2.9 million tons in 2006,
practically the same volume as in 2005.
Installed in Ouro Branco, in the Brazilian state
of Minas Gerais, Gerdau Açominas is the Group’s
largest mill. It is strategically located – close to iron
ore sources, the country’s major consumer centers
and export infrastructure, with access to railways
and the Gerdau Group’s Praia Mole private port
terminal in Vitória (state of Espírito Santo).
A US$ 1.5 billion program to expand Gerdau Açominas
is currently underway. As a result of the expansion,
the mill's installed capacity will increase from 3 million
to 4.5 million metric tons
(see Gerdau Açominas: recognized competitiveness).
The steel produced by Gerdau Açominas is used
mainly in the civil construction, naval and automotive
industries and in domestic appliances and forged
parts. In 2006, the company consolidated its presence
in the demanding European wire rod sector and
expanded its market share in structural profiles
in Brazil and a number of Latin American markets.
Gerdau Açominas also began producing high carbon
steel wire rod to break into a specialized market
sector. Among other applications, high carbon steel
wire rod is used in PC Wire, which increases the
resistance of concrete in large construction works,
as well as Bead Wire, used in tires. The rolled profiles
produced at Gerdau Açominas gained CE Marking
certification, reflecting conformity with European
market specifications, and received international
homologation for use in the naval sector. In total,
26 products were launched during 2006, 20 for the
wire rod market and six for the blooms, slabs and
billets market.
In 2006, exports accounted for 70% of the volume
sold, with Asia remaining as the main destination.
Gerdau Açominas expanded its exports to regions
with higher value added product consumption, such
as Europe, the United States and Latin America,
and gained access to markets in the Middle East
and Africa. Sales volumes in the Brazilian domestic
market also increased in 2006.
Perspectives
For 2007, the trend is to further consolidate the
company's international position, taking advantage
of the increase in production capacity to 4.5 million
metric tons when the second blast furnace comes
on line in the second half of the year. The forecast
is for an additional 500,000 metric tons during the
year, aimed chiefly at the international market.
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