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erdau Group specialty steel travels the world. It can be found in automobiles, trucks and agricultural machinery and equipment sold from Brazil to all continents in the form of parts, components, engines and steering, transmission and suspension systems. It can be found in vehicles manufactured by Volkswagen, Fiat, General Motors, Peugeot, Ford,
Mercedes-Benz, Toyota, Citroën, Agrale, Volvo, New Holland, Scania, Caterpillar, AGCO and Komatsu, among others.

In Brazil, 80% of Gerdau Aços Especiais Piratini production is destined for the automotive industry. The mill produces high value-added steel products to meet the specific needs of each customer. It sells its products primarily to the forging and auto parts sectors.

In 2005, the Group increased the mill’s installed capacity from 400,000 to 500,000 metric tons of finished products. The steel production capacity also grew to 400,000 metric tons per year.

The first Brazilian steel mill to receive the National Quality Award in 2002, Gerdau Aços Especiais Piratini’s history has been characterized by innovation. Besides developing projects in partnership with universities and research centers in Brazil, it has product and process technology transfer agreements with companies in Japan, Germany and the United States.

The idea is to work with customers, improving processes and developing new types of steel in order to find solutions that raise the competitiveness of auto part and automobile manufacturers. In the melt shop, the unit produces 150 different grades. Through its rolling mill and mechanical transformation activities, the mill produces some 10,000 different
items. The steel quality is determined by factors such as chemical composition, cleanliness and heat treatments.

In 2005, 9% of Gerdau Aços Especiais Piratini’s production related to products developed over the past three years. It also finalized 29 new projects during the year, including specific studies on heat treatments and physical and mathematical modeling programs in the melt shop.

More investments are planned for the unit over the next few years to further consolidate its position as a world class supplier for the global automotive supply chain.

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