Gerdau S.A. - Introduction

Introduction

Avenida Farrapos, 1811
90220-005 Porto Alegre
Rio Grande do Sul
Brazil
Telephone: (+55) 51-3323-2000
Fax: (+55) 51-3323-2080
Web site: http://www.gerdau.com.br

Public Company
Incorporated: 1901
Employees: 18,026
Sales: R 7.5 billion ($3.26 billion) (2002)
Stock Exchanges: Brazil New York
Ticker Symbol: GGB
NAIC: 331111 Iron and Steel Mills

A fast-rising star on the international steel market, Gerdau S.A. has long held the title of the leading producer of long steel products in Brazil and Latin America. The company is also among the top three Brazilian producers of crude steel, and also produces a range of specialty steels, principally for the automotive industry. Overall, Gerdau ranks among the top 25 global steel producers. Gerdau also manufactures a variety of finished products, including nails—the company's original product, a segment in which Gerdau is the world leader—wire, wire mesh, and wire fencing. Through subsidiary Comercial Gerdau, the company is also Brazil's leading distributor of flat steel products. Gerdau has long specialized in the operation of minimills, which use electric arc furnaces to produce steel from scrap and other metals. The company also operates a small number of traditional blast furnaces, which produce steel from raw iron ore, especially through its controlling stake in Açominos, acquired in 2002. Much of Gerdau's growth lies in a steady series of domestic and international acquisitions which had enabled it to build an international network of manufacturing facilities throughout South America and in Canada and the United States as well. In that latter market, the company controls 75 percent of AmeriSteel, based in Florida. That 1999 acquisition helped boost Gerdau's total production past seven million tons per year. Gerdau posted R 7.5 billion ($3.2 billion) in revenues in 2002. Listed on the Brazil and New York stock exchanges, the company remains firmly controlled by the founding Gerdau-Johannpeter family, who hold more than 70 percent of Gerdau's voting rights through the family holding company, Metalúrgica Gerdau.