SGR Client Profile: Gerdau

A sustainable steel business that delivers value to its customers, shareholders, employees and communities

Manufacturing has long been the backbone of the U.S. economy, fueling the Industrial Revolution and still supporting 18.5 million jobs in this country. Approximately 150,000 of those jobs are directly linked to the steel industry.

Today’s U.S. steel manufacturers are predominantly electric arc furnace (EAF) producers, which produce steel products from recycled scrap metal rather than making new steel from iron ore. This process is more energy efficient than integrated mills, as it uses recycled material and requires less electricity to operate. This type of production results in 65 to 90 percent reduction in greenhouse gas production when compared to the alternative.

Who is Gerdau?

Gerdau is the leading company in the production of “long steel” – products used in the industrial sector, particularly construction and engineering, including beams and piling, merchant bar quality, and wire ride products – in the Americas, and one of the major suppliers worldwide of special bar quality products, used by the automotive industry and heavy equipment supply chain.

The company operates 18 steel mills and, together with its scrap processing and downstream facilities, owns approximately 120 locations and employs more than 11,000 people in the United States and Canada. Steel products manufactured by Gerdau can be found in the majority of cars and trucks that you see on the road today. Chevrolet, Ford and other automobile manufacturers rely on steel produced by Gerdau for the parts used in their engines.

The U.S. military and local police rely on steel to manufacture everything from tanks to protective vests. More than 14,000 tons of Gerdau special steel can be found in Harley-Davidson motorcycles and other iconic American brands. Gerdau’s long steel is a part of famous global landmarks including the Eiffel Tower, the Panama Canal, One World Trade Center, professional sports stadiums such as the Florida Marlins baseball stadium, AT&T Stadium – the home of the Dallas Cowboys – and the “World’s Largest Fish Tank” at the Georgia Aquarium in Atlanta.

Environmental Considerations

Gerdau is proud of its products and how they are made. It is one of the most efficient steel rod producers in the world, and because it’s an EAF producer, is one of the nation’s top three recyclers. At its steel mill in Jacksonville, Florida, Gerdau is able to convert 100 truckloads per day of scrap metal into 100 truckloads of finished rebar and wire rods.

While Gerdau has a proud history and a significant place in the U.S. steel industry, Gerdau and other manufacturing companies are facing significant challenges to their international competitiveness in today’s economic climate. Since 2010, imports of long steel products from countries like China, Japan and Turkey have increased from less than 15 percent of the market share to over 25 percent. These countries are able to manufacture steel at a lower cost due to cheaper labor and significantly less stringent regulatory requirements relating to carbon emissions in their manufacturing processes.

Gerdau is among the greenest and most environmentally friendly steel manufacturers worldwide. At its steel mill in Rancho Cucamonga, California, Gerdau emits just 1,374 pounds of carbon per ton of steel produced, while Gerdau’s overseas competitors might emit more than 4,500 pounds of carbon per ton of steel produced.

Steel Proud

Gerdau is proud to support American workers by providing high-paying jobs throughout the U.S. It is proud to be green and ensures that its steel is produced as efficiently as possible. The company is also proud to be socially responsible and promotes volunteerism and the enhancement of each and every community in which it operates.