Gerdau S.A. (GGB) is a leading steel producer in Brazil with operations in South America, North America and Europe. The company is also the largest producer of long steel in the Americas. Gerdau produces steel, mostly through mini-mills and distributes steel products through its own network of 68 commercial Gerdau branches in Brazil. The company operates 26 steel mills and plants in Argentina, Brazil, Chile, Colombia and Uruguay. During 2006, the group produced 15.6 million metric tons of slabs, blooms and billets, the output of rolled products reached 12.7 million metric tons.
In the North American market, the company operates through its subsidiary, Gerdau Ameristeel. Its North American facilities are based in both the U.S. and Canada. Gerdau's business strategy is focused on the decentralized production of long steel with electric arc furnace (EAF) mini-mills employing continuous casting technology. Additionally, Gerdau has three integrated mills. Plants are sized and located to meet the needs of local markets and to access customers efficiently. This plan is a response to the geographical dimensions of Brazil and the U.S. as it relates to transportation and high freight costs. As a result, Gerdau is able to supply its customers and purchase raw materials locally. During he first three quarter 2007, the Brazilian business accounted for approximately 47% of total revenue, North American business represented 32.8%, Europe represented 9.6% and other South American countries represented 10.6%.(Read more at Wikinvest )