The company is restructuring its production processes and launching projects focused on technological upgrades, increased digitalization, efficiency improvement and cost reduction. This investment is deemed necessary due to the challenges related to excessive steel imports, especially from China.
Gerdau's new strategy includes establishing partnerships with startups, implementing new technologies for rolling and storage, automating processes and setting up dedicated mobile networks to connect equipment more effectively. In the first quarter of 2024, Gerdau allocated about $165 million for these initiatives, a 10.1% decrease from the previous year. The company plans to invest around $1.44 billion in similar developments through 2026.
In addition, Gerdau has decided to expand and modernize its production capacities both locally and internationally. It is using the recent steel import duties imposed by the Brazilian government as a strategic advantage. A key part of the technology push includes the expansion of dedicated 4G and 5G networks at the Ouro Branco plant.
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