Gerdau launches feasibility studies for construction of special steel unit in Mexico

03/05/2024

Greenfield plant will serve the growing Mexican automotive market, stimulated by the nearshoring movement in North America

Special steel at Gerdau USA | Gerdau publicity

Gerdau, Brazil’s largest steel producer and one of the world’s largest suppliers of special steel, announced today the start of feasibility analysis for constructing a greenfield unit in Mexico that will produce 600,000 tonnes/year of special steels. The Company’s plan for operational expansion in the country reflects the positive outlook for the local automotive industry and the nearshoring movement in the United States, which have positively impacted the performance of the Mexican economy.

According to Gustavo Werneck, CEO of Gerdau, the decision to study the feasibility of investments underlines the Company’s focus on the Americas and its commitment to offering innovative steel solutions and products to its customers, including the automotive industry.  “We are always looking for opportunities that can add value to our portfolio, observing future consumption trends and markets that are aligned with our ambitions.  Today, the Mexican market embodies the characteristics we seek for sustainable business expansion.  Major players in the automotive industry, including Gerdau’s current clients, are expanding their operations across Mexico, which is becoming one of the most important producers of automotive parts,” he explained.

Gerdau is still assessing the site for constructing the new unit, which could possibly be in the central region of Mexico, where the Company produces long steels. Currently, the Company operates two special steel industrial units and two downstreamfacilities in the US.

The project will be subject to the Board of Directors and, if approved, will employ a production process based on the most modern technologies available in the market and, like other operations of the Company in North America, will use metal scrap as a raw material source, which will ensure that the future unit manufactures products with low carbon emissions.