Gerdau Group enters Central America

The Gerdau Group has entered into a strategic alliance with Central America's largest steel manufacturer, Corporación Centroamericana del Acero, with an installed capacity of 500,000 tons of steel and 690,000 tons of rolled products

Yesterday, April 21, the Gerdau Group entered into a strategic alliance with Corporación Centroamericana del Acero, Central America's largest steel manufacturer. As a result of this alliance, the Gerdau Group now holds 30% of the company shares and has committed to investing US$ 180 million in the operations of Corporación Centroamericana del Acero in Central America. Corporación Centroamericana del Acero has an annual installed capacity of 500,000 tons of steel and 690,000 tons of rolled products – long steel intended for the construction and manufacturing industries. “The partnership with Corporación Centroamericana del Acero places the Gerdau Group among the major players in Central America and the Caribbean. Central America is a strategic region and has now become an important operation, along with the units in Mexico and the Dominican Republic, in meeting the local market demands. In addition, Central America has presented significant levels of economic growth over the past few years”, says André Gerdau Johannpeter, Gerdau Group CEO. The transaction announced today involves a steel mill (Guatemala), four rolled product rolling mills(Guatemala and Honduras), sales offices (Guatemala, Honduras, and El Salvador), and distribution units (Guatemala, Belize, El Salvador, Honduras, and Nicaragua). Additionally, the company holds minority interest in the Intrefica company (Honduras), dedicated to die-related activities. The company management will be shared with current stockholders.
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