Gerdau's Rolled Steel Production Increases In North America
Gerdau reported its global steel production increased in 4Q11 compared to 4Q10 while compared to 3Q11, Brazil and North America’s production declined. Production in Latin America increased due to the current boom in the region's construction segment.
Shipments in 4Q11 increased in the domestic markets of Brazil and North America compared to 4Q10. Brazil experienced a boom in civil construction, helping increase shipments while North America experienced stronger demand especially from the manufacturing and energy segments.
North America’s rolled steel production increased 11% to 1.574 million tons from 4Q10 while production was down 3% from the previous quarter. Total rolled steel production was 3.982 million tons, up from 3.663 million the previous year’s fourth quarter. North America’s net sales jumped 29% from 4Q10 while sales increased 5% from the 3Q11 to 4Q11 due to higher shipments sold.
Gerdau’s investment plan includes adding 100,000 tons in rolling capacity at its Texas Midlothian mill by 2014 along with 200,000 tons of crude steel. In Brazil, the company expects to add 1.9 million tons of flat rolled steel at its Acominas Mill by 2012-2013 including heavy plates and hot rolled coils.