In a statement, Primetals Technologies said the agreement, which arises from a 40-year relationship between the two companies, sets a strategic partnership through which they will jointly develop and execute projects and form new business models. Those projects will focus on digital innovations for smart sensors, process automation, quality control, production management, intralogistics, condition monitoring and data analytics, among other things.

The work is to be guided by a steering committee made up of Gerdau and Primetals Technologies experts. Primetals Technologies said that through the partnership, Gerdau will be able to take advantage of Primetals’ metallurgical know-how and expertise in automation and digitalization.

“For more than 100 years Gerdau has been a pioneer in the manufacturing of steel products. Now we also want to become the pioneer in the implementation of digital innovation in [the] steel industry,” said Marcos Eduardo Faraco Wahrhaftig, executive director of Gerdau’s operations in Brazil, Argentina and Uruguay.