Highlights. Issue 28 - Year 02. Read breaking news about the Gerdau Group in the Americas. Enjoy!
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1 Issue 28 - Year 02 Read breaking news about the Gerdau Group in the Americas. Enjoy! Highlights» Gerdau Ameristeel announces leadership succesion plans and appointment of Mario Longhi as president» Metalúrgica Gerdau shares included in the São Paulo Stock Exchange portfolio for the first time» Increase in steel production at Gerdau AZA» Gerdau Best of the Land Award launched at agricultural fair in Brazil» New warehouse increases efficiency of service in Canadian market» Opening of a new Gerdau sales channel in Brazil» Gerdau Group is recognized as the main company in Rio Grande do Sul» Rural Friends Club celebrates 10 years» Gerdau Açominas structural profiles are used in Petrobras platforms in Rio de Janeiro» President of the Gerdau Group participates in meeting about the future of employment Gerdau Ameristeel announces leadership succesion plans and appointment of Mario Longhi as president The Board of Directors of Gerdau Ameristeel announced on June 1 the appointment of Phillip Casey as chairman of the Board in addition to his continuing duties as the chief executive officer. Jorge Johannpeter, current chairman of the Board, will remain as a director. The Board has also approved the appointment of Mario Longhi to assume the position of president, effective immediately. The Board has anticipated that Mr. Longhi will be elected to the Board in due course and will succeed to the position of chief executive officer following an orderly transition of executive responsibilities to be completed by January 1, Mario Longhi has joined the company after a distinguished international career of 23 years with the executive team of Alcoa, the recognized global benchmark in the aluminum industry. Mr. Longhi recently served as a vice president of Alcoa, a member of Alcoa's Executive Council and Group president Global Extrusions and End Products. The Extrusions and End Products business segment of Alcoa has executive offices in Geneva, Switzerland and global operating facilities that provide aluminum products to the aerospace, automotive, building and construction and general industrial markets. During his extensive international experience with Alcoa, Mr. Longhi has provided technical and professional leadership in the construction, start up, market development, operation and change management of Alcoa's global mining, refining, smelting, rolling, extrusion, casting and forging and other product manufacturing affiliates. As a Group president and member of the Executive Council, Mr. Longhi has actively participated in Alcoa's strategic direction and policy decisions as well as the continuous improvement cultural initiatives of Alcoa's Business System. Mr. Longhi has received bachelor and master graduate degrees in metallurgical engineering from the University of Technology Maua, São Paulo, Brazil.
2 Upon relinquishing his day to day leadership responsibilities, Mr. Casey will continue to serve as chairman and will transition to a more strategic role in guiding the company's growth plans and in corporate governance activities. Mr. Casey will also provide guidance and counsel to Mr. Longhi as he becomes involved in the policy decisions and political affairs of the steel industry trade associations. Metalúrgica Gerdau shares included in the São Paulo Stock Exchange portfolio for the first time In May, Metalúrgica Gerdau S.A. preferred shares became part of Ibovespa, the São Paulo Stock Exchange (Bovespa) stock portfolio. The 55 shares included in this index have the highest liquidity on the market and serve as a reference for major investors and funds. Inclusion in the Ibovespa involves the evaluation of criteria such as the volume traded, the number of transactions effected and negotiability over the last 12 months. The Gerdau Group's two open capital companies in Brazil, Metalúrgica Gerdau S.A. and Gerdau S.A., are included in the index. Gerdau S.A. has the 6th largest weight among all 55 shares included, while Metalúrgica Gerdau S.A. has the 32nd largest. Portfolio management and stock exchange operations manager, Vilarci Fonseca Aquino (first on the left), and director of finance, José Maurício Werneck (second on the left), rang the bell to open trade on the Bovespa on May 6
3 Increase in steel production at Gerdau AZA Taking advantage of a strong phase in the Chilean steel market, the Gerdau Group plans to increase its production in the country over the next few years. It is estimated that steel consumption will grow approximately 4.5% per year until The investment program, called the Bicentennial Plan, involves investments of approximately US$ 120 million in the Gerdau AZA steel mill until 2010, when the Republic of Chile will celebrate its 200- year anniversary. The first phase, which will last until 2008, involves investments of US$ 30 million to increase the mill's annual production capacity to 500,000 metric tons. The general manager of Gerdau AZA, Hermann The second phase will involve investments of US$ von Mühlenbrock, during the press conference 90 million and will increase the mill's production on the launch of the Bicentennial Plan capacity to 750,000 metric tons in Gerdau AZA will then have the capacity to produce 35% of Chile's total consumption, consolidating its position as the second largest steel producer in the country. To boost production levels, the steel mill will increase its annual volume of recycled scrap, the primary raw material used for steel production. Over 75,000 metric tons of steel scrap will be reused per month, compared to the current volume of 40,000 metric tons. Gerdau Best of the Land Award launched at agricultural fair in Brazil The judging commission coordinator, Luiz Fernando Coelho de Souza, during the press conference at Agrishow Ribeirão Preto The launch of the Gerdau Best of Land Award was one of the main attractions at Agrishow Ribeirão Preto (state of São Paulo), an important agribusiness fair in Brazil. The award is the largest in South America for the agricultural machinery and accessory sector. "The goal of the Gerdau Best of Land Award this year is to increase registrations in the Research and Development category by 30%", said Luiz Fernando Coelho de Souza, judging commission coordinator. Souza led the press conference for the award held on May 17. The Research and Development category recognizes the best scientific studies completed by under-graduate and graduate students or by agrarian science professionals associated with universities or research institutes. The award also has two other categories, Highlight and New Product. Over the past 11 years, the judging commission has traveled the equivalent of eight trips around the world to interview the users of the products registered in the Highlight category in Brazil and the Mercosul member countries, and to evaluate the performance of the machinery in the field. A detailed profile of each product is developed based on the interviews and observations of specialists. This profile also includes an evaluation of the technical assistance at the time of delivery as well as the company's relationship with its customers during the post-sales phase. The observations are sent in a confidential report to the manufacturer, with the objective of encouraging the technology improvement and strengthening the relationship between the manufacturer and the user. The participants in the New Product category will be judged at Expointer 2005, the largest agricultural fair in Brazil's southern region. At the event, the judging commission will visit booths where equipment is being exhibited. The award ceremony for Gerdau Best of the Land will take place on August 31 at Gerdau Riograndense in the state of Rio Grande do Sul.
4 New warehouse increases efficiency of service in Canadian market Nearly 39,000 man hours and 650 tons of steel were used to build the new warehouse of the Gerdau Ameristeel Whitby steel mill in Ontario, Canada. The new warehouse has an area of 10,500 square meters, equivalent to two football fields. Total investment was US$ 8.8 million. Combined with the mill's three existing warehouses, the mill can now store up to 80,000 tons of finished steel, ready to ship to customers. The president of the Gerdau Group, Jorge Gerdau Johannpeter (fourth from left to right), with executives from Gerdau Ameristeel and Canadian authorities during the inauguration Opening of a new Gerdau sales channel in Brazil Comercial Gerdau, the largest distributor of steel products in Brazil with 74 locations, is launching a new sales office with a new concept, located closer to their clients. The first store was opened in April 2005, in São Caetano do Sul, state of São Paulo. In an area of 1.2 thousand square meters, the store offers the largest variety of steel products oriented to consumers that need more flexibility, such as people building or renovating their own homes, smiths, carpenters and solderers. These clients can receive technical assistance from salespeople specialized in steel application. The new store allows consumers to buy small quantities of products such as nails, wires, stirrups, electrodes, pipes and fittings, and offers self-service and prompt delivery. Customers can pay with credit cards, and the store is open during business hours, including Saturdays. The goal is to open six new stores in Brazil by 2006, and will cost around US$ 1,6 million.
5 The first store of Comercial Gerdau oriented to the end client was opened in the end of April 2005 Gerdau Group is recognized as the main company in Rio Grande do Sul Gerdau Group was honored twice by the people from the state of Rio Grande do Sul. It won the Top of Mind award in two categories: Large Company and Most Remembered Businessman in Rio Grande do Sul, the southern Brazilian state where Gerdau has been present for 104 years. Recognized as the main businessman in the state, Jorge Gerdau Johannpeter thanked the local community at the event, which attracted approximately 700 people. "The recognition of Rio Grande do Sul strengthens our values and motivates us to move on in the construction of an international company", stated Johannpeter. The Top of Mind prize awards the most From left to right: president of the Gerdau Group, remembered brands, products and services in the Jorge Gerdau Johannpeter, and governor of the state. It was created 15 years ago by Amanhã State of Rio Grande do Sul, Germano Rigotto magazine, an important business publication in the region. This year the survey interviewed 1,200 people between the ages of 16 and 65 in seven regions of the state.
6 Rural Friends Club celebrates 10 years The Gerdau Group's main communication channel with the agricultural sector of Brazil celebrated 10 years and now has more than 10,000 members. The Rural Friends Club keeps professionals and students from this segment up-to-date on the market by sending them technical material and organizing lectures with specialists from the sector. The Fence Builder Project, one of the activities developed by the program, mobilized hundreds of rural producers from the Central-Western and Southeastern regions of Brazil. More than 350 farmers participated in the project during the Agrishow Ribeirão Preto agribusiness fair, in the state of São Paulo, and the Goiânia Fair, in the state of Goiás. Five caravans came from the rural regions of the states for each fair. The rural producers watched a lecture on Gerdau products for the agricultural sector and participated in a practical course with professional fence builders, who demonstrated new techniques for assembling fences and answered visitor questions. Rural producers who are members of the Rural Friends Club can participate in initiatives such as the Fence Builder Project Gerdau Açominas structural profiles are used in Petrobras platforms in Rio de Janeiro Gerdau steel is participating in the expansion of oil exploration capacity in Brazil. Gerdau Açominas structural profiles are being used in the construction of platforms P-34, P-50, P-51, P-54, and PRA-1 in Rio de Janeiro. More than 4,000 tons of steel has been used in the construction of the platform modules. The profiles, cut in a T shape, have also been used as reinforcement of sheets. According to Petrobras, the total investment of the state-owned company in the construction of these units exceeds US$ 3 billion, and the production capacity will be of 600,000 barrels of oil a day. Gerdau products are present in Petrobras oil platforms
7 President of the Gerdau Group participates in meeting about the future of employment A debate about the future of employment: was proposed during the 18th Freedom Forum, attended by 6,000 people on May 2-3 in the city of Porto Alegre in the state of Rio Grande do Sul, Brazil. The Gerdau Group president, Jorge Gerdau Johannpeter, participated in the meeting as a panelist for the debate "Employment and Personal Achievement" together with economist Eduardo Giannetti da Fonseca, PhD. During the panel, Johannpeter discussed the historical relationship of employment and traced a parallel between the former and current company. Fonseca talked about challenges for personal achievement. The event, promoted by the Business Study Institute, is recognized in Brazil as a space that encourages discussion, freedom of expression and democracy. The president of the Gerdau Group, Jorge Gerdau Johannpeter, was one of the lecturers at the meeting that gathered more than 6,000 people
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