Magnesita Awarded Refractory Contract for Gerdau Ameristeel’s Sayreville Facility
04/28/2011 - Gerdau Ameristeel has awarded Magnesita Refratários S.A. a contract to manage all refractory needs for Gerdau’s Sayreville, N.J., steel mill.
Gerdau Ameristeel has awarded Magnesita Refratários S.A. a contract to manage all refractory needs for Gerdau’s Sayreville, N.J. electric arc furnace (EAF) rebar operations steel mill. The five-year Cost Per Performance (“CPP”) contract has an estimated value of $4.5 million annually, and is the ninth CPP contract of its kind to be awarded by Gerdau to Magnesita in North America.
Under the terms of the contract, Magnesita will supply 100% of the refractory needs for the electric arc furnace, steel ladles, and continuous casting operations at Gerdau’s Sayreville facility. Through Magnesita’s unique CPP contract model, Magnesita will provide high-grade products and manage the entire refractory process, utilizing its focused business model and deep production knowledge to support improvements in Gerdau’s manufacturing processes. The model employs customized steelmaking technology and tracking systems to optimize process conditions and provide management visibility.
According to Magnesita, its CPP model, now implemented in 15 North American mills and 57 facilities worldwide, has emerged as a top strategic initiative among leading organizations that helps to drive down steelmaking costs, increase productivity, and support new growth and innovation.
“We are very pleased to be continuing our longstanding partnership with Gerdau Ameristeel, the second-largest mini-mill steel producer, and steel recycler in North America, through this award,” said James Piraino, Chief Operating Officer, North America. “Together we will work to reduce the controllable costs of steelmaking at Gerdau’s Sayreville facility, improving overall productivity by optimizing refractory usage, equipment utilization, and energy consumption. We look forward to leveraging conversion efficiency and refractory application through the Magnesita CPP model to better position Gerdau for an increasingly competitive industry.”
This contract marks Gerdau’s 25th worldwide contract with Magnesita, further building on a longstanding partnership that dates back to 1993.
Magnesita Refratários S.A. is a leading vertically integrated refractory producer supplying refractory solutions to steel, cement, glass, aluminum and other industries worldwide. With 28 industrial and mining facilities located around the world, Magnesita is the third-largest player in the refractory sector worldwide, one of the largest global suppliers of refractory solutions for the stainless steel industry, and a leading supplier of refractory products in Brazil and South America. The company holds one of the largest and highest-grade reserves of magnesite, dolomite, and talc worldwide, as well as high-grade deposits of chromite and clay, and unexploited graphite reserves. Headquartered in Sao Paulo, Brazil, Magnesita has approximately 8,039 employees and operations in eight countries, including Brazil, Germany, China, France, Belgium, Taiwan, Argentina, and the United States.
