The company said that effective 1 January 2018, chief executive André Gerdau Johannpeter and executive vice presidents Claudio Johannpeter and Guilherme Gerdau Johannpeter will step down from their executive roles, but will continue to serve on the boards of directors of their respective companies, Gerdau SA and Metalúrgica Gerdau SA.

The announcement comes as the company fights charges that it evaded more than US$400 million in Brazilian taxes. However, André Gerdau Johannpeter denied that the leadership change was motivated by the charges, the Dow Jones Newswires reported.  

The company said the announcement follows more than 12 months of planning.  

Succeeding Gerdau Johannpeter as chief executive will be Gustavo Werneck, who currently serves as the executive officer of Gerdau’s Brazilian operations. 

Wernck, 44, holds a bachelor's degree in mechanical engineering from the Federal University of Minas Gerais and MBAs from INSPER and Fundação Getulio Vargas. 

"We are confident in Gustavo Werneck's unique management capability and adherence to Gerdau's new business culture. In all the positions he has held, he always delivered strong results, overcome important challenges, and built high-performance teams using an innovative management profile and contagious energy," Gerdau Johannpeter said in a statement.