The Gerdau Group invests increasingly in reducing the environmental impact of its operations,
by reducing waste generation and encouraging the use of by-products in other sectors of
the economy. The Company also promotes continuous upgrades to the air, water and soil
protection technologies at its industrial plants, an initiative that received investments
totaling R$ 186.6 million in 2005.
In addition, the Group supports environmental education projects for employees and
communities close to Gerdau units.
ENVIRONMENTAL MANAGEMENT SYSTEM
The Environmental Management System involves the analysis of over a thousand industrial
activities, from raw material collection to the distribution of steel products. It evaluates the
possible environmental impacts of each activity and defines procedures to be adopted so that
possible damage to the environment can be avoided. The system also lays down necessary
procedures so that monitoring can be carried out in an appropriate, ongoing manner. For
this reason, it involves all employees and encourages the forwarding of suggestions via the
intranet, broadening the commitment to positive results in the environmental area.
ISO 14001
In 2005, two Gerdau Group plants demonstrated the consistency of their environmental
management by receiving ISO 14001 certification: Gerdau Aços Especiais Piratini and Gerdau
Riograndense (both in the state of Rio Grande do Sul). This certification consists of a set of
environmental norms established by the International Standards Organization.
At the beginning of 2006, Gerdau Açonorte (state of Pernambuco) and Gerdau Cotia
(state of São Paulo) also obtained environmental certification. The Group currently has a
total of 16 certified units.
The target is for all units to achieve ISO 14001 certification. To date, around 40% of the
Group’s employees and service providers work in plants with environmental certification.
RAW MATERIALS
The Gerdau Group is the second largest recycler in the Americas, using scrap as one of
the main inputs in its industrial activity. This input accounted for around 68.6% of its
regional production in 2005. During this period, around 10 million metric tons of scrap was
transformed into new steel products.
In 2005, the use of shredders in scrap processing was expanded in Brazil. This equipment is
used to shred and separate raw materials in order to obtain a cleaner metallic charge for
the furnace, leading to greater energy efficiency and reduced particle emissions. This was
also one of the reasons for the installation of scrap collection centers in Chile, outside
the Colina industrial plant. In 2005, two new centers were opened, with a further three
planned for 2006.
WATER
The use of water is fundamental in steel production. It is used mainly for the cooling of
equipment and products, as a result of the extreme temperatures reached during the
industrial process.
Given that water is an increasingly scarce
resource, the Gerdau Group has invested
in water reuse. At 96.8%, the recirculation
level at Gerdau units is now among the
best in the international steel sector,
drastically reducing the need for water
intake. In addition, some Gerdau units also
have rainwater collection systems.
AIR
The preservation of air quality is achieved mainly by means of continuous maintenance and
technological upgrading of the dust removal systems. These are equipment assemblies
capable of highly efficient
filtration of solid particles
produced in the steelmaking
process (see box: Technology Increases Efficiency of Dust Removal Systems).
In 2005, 99.4 thousand metric tons of particulate material were collected, not including the
North American plants.
The carbon dioxide emission index for the Group’s units is 561.9 kg per metric ton of steel
produced. This indicator refers to the consolidated average of all Gerdau Group steel mills,
and is better than the world steel sector average of 1,700 kg per metric ton, according to
International Iron and Steel Institute (IISI) data.
An example of the initiatives adopted in 2005 to preserve air quality is the increased use of
environmentally friendly fuels in the reheating process, such as natural gas in place of oil. This
procedure allows reduced emissions of carbon dioxide (CO2), the most relevant to the steel
sector of the gases dealt with in the Kyoto Treaty.
SOIL
Each year, the volume of by-products reused either by the steel sector or by other
economic sectors shows significant growth. In 2005, 80% of by-products generated by the
Gerdau Group were recycled, compared to 66.3% in the previous year, thereby reducing the
extraction of natural resources. These by-products consist of a range of materials – mainly
slag, scale and carbon compounds – used in dozens of applications such as road paving,
cement manufacturing, aluminum, plastics, solvents, paints and pigments. The materials
that are not reused are disposed of in appropriate storage centers, in accordance with
rigid quality standards.
Gerdau Açominas (state of Minas Gerais) stands out for its use of coal fines (reuse of coal
dust in the productive process) and iron ore fines (powdered iron ore) in the blast furnace,
materials that were once not used in the production process. Gerdau Aza, in Chile, is another
example of a unit that has invested heavily in projects for the reuse of slag, a material
resulting from the melting of scrap and from steel refining.
ENERGY
The steel sector is known for its intensive use of energy. For this reason, the Gerdau Group
invests in programs to reduce consumption and in equipment that allows for better energy
performance, reusing gases from the industrial processes and making use of alternative
energy sources (see box: Old Tires Used As Alternative Energy Source in the United States).
At Gerdau Açominas (state of Minas Gerais), for example, 98% of the energy from the gases
produced in the steelmaking process is currently recovered, providing an internal energy
source that meets around 75% of the mill’s operational needs. Another feature is the major
initiative at Gerdau Ameristeel Cambridge, in Canada, which uses methane gas from an organic
waste landfill in place of natural gas (see box: Sustainable Energy for Canadian Mill).
In 2005, the increase in specific energy consumption was due to the reduction in production
levels. The period of adaptation to the new production levels saw a greater use of this input.
Energy consumption
2005
Oxygen (mNm3)
812,373
Natural gas (mNm3)
635,621
Diesel (m3)
9,826
Lubricants and greases (t)*
1,555
* Except Gerdau Ameristeel and Gerdau AZA.
BIODIVERSITY
Preserving the greenbelts around its mills is part of the Gerdau Group’s commitment to
sustainable development and quality of life for the community. Out of a total area of 17,100
hectares, the Company devotes 3,300 to the maintenance of native forests. A further
429 hectares corresponds to legal reserves or permanent protection areas.
ENVIRONMENTAL EDUCATION
The Gerdau Group invests heavily in
environmental education with the aim of
encouraging its employees in the practice
of nature preservation.
In 2005, approximately 18,000 employees
and service providers took part in events
such as lectures and courses with an
environmental focus. The total time
involved in environmental training of
employees and service providers totaled
80,100 hours.
The use of water is fundamental in steel production. It is used mainly for the cooling of
equipment and products, as a result of the extreme temperatures reached during the
industrial process.
ENVIRONMENTAL EDUCATION