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Gerdau plans to build new special steel plant in Mexico


May 11, 2024 - According to a report, Brazil's Gerdau is considering building a new special steel plant in Mexico. The planned capacity will be 600,000 tons per year. Gerdau pointed out that the expansion in Mexico is due to a positive outlook for the local automotive industry and U.S. nearshore outsourcing.

Gerdau indicated that in the first quarter, its crude steel production in North America decreased by 2.8%. However, its special steel business output increased by 3.3%, which was driven by automobile production in Brazil.

According to the company's financial vice president, Rafael Japur, the Mexican market for special steel consumes 1.2 million tons per year, of which 70% is currently supplied through imports.

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