Gerdau acquires company in Venezuela

The Gerdau Group acquired Siderurgica Zuliana, C.A. (Sizuca), the third largest steel producer in Venezuela

Gerdau Group acquired all of the capital stock of Siderurgica Zuliana, C.A. (Sizuca), the third largest steel producer in Venezuela, for US$ 92.5 million. The company is located in Ciudad Ojeda, 50 miles from Maracaibo. The Sizuca is a mini-mill and producer of rebar, has an annual installed capacity of 300 thousand metric tons of steel and 200 thousand metric tons of rolled steel. With 340 employees, Sizuca is focused on the domestic market. “Venezuela has an expanding economy and growing domestic demand, as well as a great availability of energy, scrap and ore. This investment represents an important step in the growth of Gerdau Group on the American continent,” says CEO André Gerdau Johannpeter. The acquisition ensures the Group's presence in a country that has recorded strong economic growth in recent years. In 2006, Venezuelan GDP grew 10.3%, the same as in 2005. Also, investments in infrastructure are rising, which has a positive effect on the performance of the civil construction sector, a large consumer of rebar.
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