Gerdau has launched a new business unit to develop new steel products and expects around 20pc of its revenue to be generated from this unit in the next 10 years.
Gerdau said in a statement on Monday that it would invest $1bn over the 10-year period in this business to improve the steel value chain and will include developing strategies related to suppliers and customers, using new materials and the future of construction, steel, and mobility.
The steelmaker did not disclose details about how this new business unit will improve its total crude steel production.
The new business, called Gerdau Next, will be managed by Juliano Prado, who worked previously in energy companies such as Shell, Raízen, and Cosan, Gerdau noted.
On June 25, Gerdau announced an increase in its flat steel prices between 8pc-10.5pc for long steel products and 6pc-9.5pc for flat steel products.
Brazil’s crude steel production dropped by 22.6pc to 2.1mn mt in May this year compared the same month the prior year, according to figures from the World Steel Association.