Gerdau Announces Project Gerdau 2022 Corporate Restructuring Plan
07/16/2015 - On 14 July, Gerdau S.A. announced a sweeping corporate restructuring plan to respond to market changes and consolidate ownership of its South American, North American and Brazilian operations.
Titled Project Gerdau 2022, the company plans to make the following changes:
The company also announced that the boards of directors of Gerdau S.A. and Seiva S.A. Florestas e Indústrias are exploring opportunities for consolidation during the second half of 2015.
Gerdau S.A.’s board have approved the acquisition of the remaining minority interests in four of its closely held operating companies: Gerdau Aços Longos S.A., Gerdau Açominas S.A., Gerdau Aços Especiais S.A. and Gerdau América Latina Participações S.A. With the 1.986 billion reais ($632.5 million USD) purchase, Gerdau aims to turn these operations into wholly-owned subsidiaries and/or merge companies.
Gerdau will formally present these changes in their 3Q15 results.
Source: Street Insider
- The company’s Mexico operations, as well as joint ventures in the Dominican Republic, Guatemala and Mexico, will be rolled into its North American Business Operation, which currently consists of its long steel production facilities in Canada and the U.S.
- A new operation, titled the South American Business Operation, will be formed by Gerdau’s long steel operations in Argentina, Chile, Colombia, Peru, Venezuela and Uruguay.
- Gerdau’s Iron Ore operations will now be a part of its Brazil Business operation, which consists of long and flat steel operations in Brazil and metallurgical coal and coke operations in Colombia.
- The Special Steel Business Operation, which includes operations in Brazil, Spain, India and the U.S., will remain unchanged.
The company also announced that the boards of directors of Gerdau S.A. and Seiva S.A. Florestas e Indústrias are exploring opportunities for consolidation during the second half of 2015.
Gerdau S.A.’s board have approved the acquisition of the remaining minority interests in four of its closely held operating companies: Gerdau Aços Longos S.A., Gerdau Açominas S.A., Gerdau Aços Especiais S.A. and Gerdau América Latina Participações S.A. With the 1.986 billion reais ($632.5 million USD) purchase, Gerdau aims to turn these operations into wholly-owned subsidiaries and/or merge companies.
Gerdau will formally present these changes in their 3Q15 results.
Source: Street Insider
