Steel Products
Gerdau Divests Another U.S. Mill
Written by Tim Triplett
February 1, 2018
Gerdau SA is divesting its Beaumont, Texas, wire rod mill and two downstream operations, Beaumont Wire Products and Carrollton Wire Products, to reduce its footprint in the U.S. long products market. Optimus Steel LLC will acquire the facilities for $92.5 million in a deal to close by the end of the year.
The sale is the latest in a series of divestments worth more $1 billion. “The strategy in North America, a key market for us, is to improve our profitability, focus on more value-added products and better serve our customers,” said Gerdau CEO Gustavo Werneck. “We remain committed to strengthening our position in the U.S. in the next years and we see a great growth potential in the markets that Gerdau will continue to operate.”
Earlier in January, Gerdau agreed to sell four rebar mills and various downstream facilities to Commercial Metals Company for $600 million.
Earlier this week, Gerdau announced plans to begin producing 240-mm square blooms at its special bar quality mill in Monroe, Mich. The larger section size will result in a greater reduction ratio, improved surface quality and cleaner steel with fewer inclusions, the company said.
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Tim Triplett
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