Gerdau Corsa opens new plant in Hidalgo for steel structural profiles

Gerdau Corsa opened a new steel mill in Sahagún, Mexico, which will increase its steel production capacity and provide better service to the market for steel structural profiles in Mexico.

The company invested US$ 600 million to build the mill, which was the most important private investment in the history of the state of Hidalgo. The plant has installed capacity of 1 million tonnes of liquid steel and 700 thousand tonnes of finished product.

Steel production at the Sahagún plant started in the second half of 2014, and rolling operations started in May of this year. The mill will produce steel beams and other products, such as angles, pipes and sheets. The plant will provide more than 100 different beam sizes and options (IPR).

The rolling process involves a technological innovation that enables quick changes in measurement, offering higher product availability in the domestic market.

The Sahagún plant is positioned in a geographically important location, which will facilitate transportation of both raw materials and finished products. The plant can be easily accessed through the most important highways, railroads, ports and commercial zones in Mexico.

"Gerdau believes in the capacity of the Mexican steel industry, supporting the country's growth and economic development. With this investment, Gerdau Corsa becomes one of the main producers of long steel in Mexico's construction and industrial markets," said André B. Gerdau Johannpeter, Gerdau CEO.

"The production of structural profiles in Mexico by Gerdau Corsa will reduce current imports of the product in the country, bringing significant benefits to all parties involved in the distribution, sale and use of structural steel," said Juan Ángel Córdova, member of the Board of Directors of Gerdau Corsa.

"There are countless possibilities to explore and develop steel-based construction. We believe that by doing this together with all other parties in the chain, we will be able to meet the needs of an increasingly competitive and challenging market. Today, we at Gerdau Corsa are proud to say that we have structural profiles 'Made in Mexico,'" said Felipe Reinaux, Managing Director of Gerdau Corsa.

Gerdau Corsa is aware of the importance of protecting the environment, which is why the new plant uses sustainable technology to help preserve the environment. The company invested US$ 5.1 million in a scrap pre-heating and continuous feeding system. With this system, it is possible to pre-heat the scrap using the heat generated in the process. This reduces energy consumption at the plant.

Similarly, a total of US$ 30 million was invested in a water treatment facility, which will enable reuse of up to 97.5% of the water required for the process, avoiding waste of such a vital substance in the region, and another US$ 17 million was invested in a modern humus collection system that captures the solid particles generated during the steelmaking process, which are also reused.

Gerdau Corsa has strived to provide an environment of collaboration and commitment to all of its employees, encouraging the creation of competitive jobs in the steel industry that promote the integrity and safety of the work teams. At the height of construction, 4,000 indirect jobs were created. The company currently has 500 direct employees and created about 2,000 indirect Jobs.

With regard to social responsibility, Gerdau Corsa has implemented a number of programs with a strong commitment to the sustainable development of the plant's operations. All the programs are coordinated through the Gerdau Institute and focus on community work, education, management quality, volunteering and commitment to the environment.

Since 2014, Gerdau Corsa has implemented various social responsibility programs among the communities surrounding the Sahagún plant, benefitting more than 1,000 people. Some of the initiatives that stand out include the ProEmployment Foundation, which promotes a business culture that encourages micro enterprises, supplier development in order to train them and improve their productivity, and financial support to the Gerontology Center for elderly people, among others.

So far this year, 10 programs were implemented in the communities close to the Sahagún plant. Another eight programs should be implemented by the end of the year, which will continue to provide ongoing support to the city of Sahagún.

About Gerdau Corsa

Gerdau Corsa is one of the main long steel producers in Mexico, with operations in eight states. It currently operates in the construction and industrial markets, with two steel and rolling mills in the state of Mexico and one new plant in Sahagún, Hidalgo, for the production of steel structural profiles, with installed capacity of 1 million tonnes of steel per year. It also has three scrap processing and collection units, a rebar plant and six distribution centers in the country. In Mexico, the Company produces structural profiles, commercial profiles, corrugated rebars and bent and cut rebars for the construction, steel-based construction and specialized industries. Its products come with guaranteed quality as they meet the specifications of domestic and international standards. Gerdau Corsa is a company committed to the environment and which pursues sustainable solutions throughout its production chain.​

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