Gerdau, Sumitomo, and JSW Announce Brazilian Joint Venture
Gerdau, Sumitomo and The Japan Steel Works (JSW) announced their intention to form a joint venture in Brazil for the manufacture of parts made from special steels for the wind-power industry. The project, which will be located at Gerdau’s existing mill in Pindamonhangaba and create 100 new direct jobs, will start supplying parts for wind turbine towers in 2017. The new joint venture will involve an investment of about $70 million for new production equipment and will also manufacture rolling mill rolls for the steel and aluminum industries. The facility’s total capacity should reach 50,000 metric tons per year.
Gerdau’s interest in the joint venture should be more than 50%. Sumitomo and JSW are Japanese companies with expertise in the global wind-power industry and knowledge of production processes for components for the industry. Gerdau's joint efforts with the two companies will enable local production of parts for the construction of new wind farms in Brazil.