Brazilian steelmaker Gerdau has halted steelmaking at its plant in Divinópolis, in the state of Minas Gerais, while keeping rolling operations running.
The company attributed the decision to the plant’s loss of competitiveness and a lack of iron ore at competitive prices. Rising steel imports and unfavorable conditions for accessing international markets, which have historically been important to the plant, have also contributed to the situation.
Divinópolis is an integrated steel complex with annual capacity of 600,000 metric tons. It produces long steel products, mainly rebar. With the blast furnace and melt shop shut down, the rolling operations will use feedstock from other Gerdau plants, including the site in Ouro Branco, also in Minas Gerais.
Divinópolis Mayor Janete Aparecida Silva said the shutdown would affect 1,000 people, including Gerdau employees and contractors. She said the plant accounts for 15% of the municipality’s tax revenue.
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