Gerdau, Brazil’s Largest Steel Producer, Reports 141% Increase in Revenue and Makes Impressive R$700 Million Investment in Industry for Automation and New Businesses

Steel Multinational Had One of the Largest Growths in the Last 3 Years in the Industry

Gerdau is the largest steel company operating in Brazil and has achieved impressive revenue numbers, despite the pandemic. In this sense, it closed the second quarter of 2022 with revenue of R$22.9 billion, which is 141% higher compared to the last 3 months of 2019. Additionally, EBITDA was adjusted to R$6.6 billion, with a percentage 400% higher than in the last 3 years. Given this scenario, the company decided to invest in automation and new businesses in the industry.

After the onset of the pandemic, the company found itself startled by the unpredictability of the economic landscape in Brazil and around the world. However, in these moments of difficulty, the company saw a path to invest and improve processes. Therefore, Gerdau seeks a complete modernization of its special steel mills by 2025. Check out where the next investments will be made.

Learn a Little More About Gerdau’s History with the Video Below

Pindamonhangaba Plant in São Paulo Had an Investment of R$700 Million for Special Steel Production

With the aim of modernizing its steel production, Gerdau inaugurated the Pindamonhangaba Plant in São Paulo, which had an investment of R$700 million. This plant provides a new type of continuous casting in blocks and is the result of the company’s focus on exponential growth in the Americas.

Companies in the automotive sector have shown significant growth and make up one of Gerdau’s main customers. Therefore, the outlook is very positive for the expansion of the steel industry. Although the automotive sector has faced some issues with a lack of components, experts believe the market will remain strong at the end of 2022.

In this sense, the Pindamonhangaba Plant plays a fundamental role with the new type of casting that is directly linked to the concept of Industry 4.0. Thus, Gerdau tends to insert itself more and more into the steel market as a high-tech company, increasing competitiveness and further consolidating itself in the Americas.

Gerdau Seeks New Automation Mechanisms to Modernize Steel Industry Processes

The large multinational is seeking modernization by 2025 and is adopting machinery that brings technological innovation for steel production. In this sense, the newly inaugurated unit already features an upgrade in casting, generating gains in safety, quality, and sustainability. After all, the upgrade allows for the use of clean steel, which is more resistant and produced cleanly.

Through these modifications, Gerdau can increase its competitiveness and reduce production costs and the time spent on it. This plant is just one of the first to receive this upgrade. However, the company intends to extend automation to other mills, such as the one in Mogi das Cruzes, São Paulo, and Charqueadas, Rio Grande do Sul.

Joint Venture with Randon Companies Has an Investment of R$250 Million for New Business in the Segment

In September, Gerdau announced a partnership with Randon Companies to create a joint venture for the rental of heavy vehicles. This partnership brings an investment of R$250 million and promises to diversify the range of products. After all, the core of the new business would be the rental of trucks and semi-trailers for transport companies, expanding the services and products offered.

The company is entering new businesses at a time when the Steel Industry Confidence Index (ICIA) shows growth with an increase of 3.7 points in September compared to August. The index is optimistic and aligns with a significant production, recording 23.1 million tons of steel in the year 2022.