Gerdau to expand operations in Colombia

The new company controls metallurgical coke production units and coal reserves for coke estimated at 20 million tons

Gerdau Group announces that it has signed today a US$ 59 million purchase and sales agreement to buy 50.9% of the shares of Cleary Holdings Corp., a company controlling a metallurgical coke production unit and cokable coal reserves located in Colombia. The agreement is subject to approval by regulatory agencies in the Colombian market. Coke, which is made from coal, is used as one of the raw materials in the steel-making process in integrated mills that operate with blast furnaces. “This investment is part of Gerdau Group’s growth strategy and is another step towards ensuring the supply of fundamental raw materials for steel production”, states André Gerdau Johannpeter, the company CEO. The unit has an annual installed capacity of 1 million tons of metallurgical coke and the reserves, according to preliminary estimates, total 20 million tons of cokable coal. The entire coke production is mainly exported to the United States, Peru, Canada, and Brazil. Approximately 1,300 people work for the company, considering employees and service providers.
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