Brazil’s Gerdau seeks entry to Chinese steel markets

10 January 2006

Beijing, China, 10 Jan – Latin America’s biggest steel maker, Brasil’s Gerdau SA, is studying a possible move to acquire or build from scratch a plant in China whose fragmented steel sector is currently being consolidated.

Speaking Monday to the China Daily, Gerdau’s executive vice-director, Claudio Gerdau Johannpeter, said his company was seeking “acquisitions or green-field plants” though deals with Chinese firms.

China’s Minmetals Corp, the country’s biggest metal trading firm, secured US$ 236.5 million in loans this week to supply Gerdau with equipment and plant – the biggest order with a foreign firm for steel equipment by a Chinese firm to date.

Gerdau, the world’s 13th biggest steel producer, is in the process of upgrading its facilities in an effort to boost production by 50 percent to 4.5 million metric tons a year. (macauhub)