Issue 38 - Year 03 Read breaking news about the Gerdau Group in the Americas. Enjoy! Highlights» Gerdau Group increases its presence in the United States» Gerdau supports increased efficiency in the agrobusiness» Gerdau Voluntary Cup should increase the number of voluntary workers in the country by 10%» Gerdau Group rises 30 places in the ranking of the most valuable companies in the world» Gerdau opens Popular Restaurant in Salvador (in the state of Bahia)» Constructors from Paraná follow the production of GG 50 Rebar» Gerdau's Pro-Infancy Fund serves as an example for social institutions in São Paulo» Jorge Gerdau Johannpeter makes a difference» Gerdau AZA Seminar stimulates transparency in Chile» Diaco strengthens Brazil's relationship with Colombia Gerdau Group increases its presence in the United States In the last thirty days, the Gerdau Group announced three acquisitions in the United States: Sheffield Steel, Callaway Building and Fargo Iron and Metal Company. The new units increase the presence of Gerdau Ameristeel, responsible for operations in North America. Sheffield Steel is a long steel producer with annual sales of approximately 550,000 tons. It operates a steel mill and a rolling mill in Sand Springs, Oklahoma, a rolling mill in Joliet, Illinois and three conversion units in Kansas City and Sand Springs. The amount to be paid for the entire shares of Sheffield is US$ 76 million, as well as a net debt and some long term liabilities of approximately US$ 94 million. The conclusion of the agreement is forecast for the second trimester. Another business acquired by Gerdau Group was Fargo Iron and Metal Company, a scrap metal warehousing and processing company in North Dakota. Callaway Building Products, which was also incorporated into Gerdau Ameristeel, principally services the civil construction industry with doubled and cut rebars and other products, in the Tennessee region. The Gerdau Group is the thirteenth largest steel producer in the world, with 13.7 million tons in 2005 and operates 30 steel plants in Brazil, Argentina, Chile, Colombia, Uruguay, Canada and the United States. As well as these, it has a 40% participation in the Spanish steel group Sidenor, a special long steel producer and 50% in Gallatin Steel, in the USA, a flat steel manufacturer.
Gerdau supports increased efficiency in the agrobusiness One of the most recent initiatives of the Friends of the Countryside program, focused on the development of the farming and cattle raising sector, was its support for the Brazilian Beef Symposium which took place in the "Luiz de Queiroz" Senior School of Agriculture at the Esalq / University of São Paulo. The closing speech of the symposium was given by Minister Luiz Fernando Furlan, who spoke about the politics of commercialization and commercial agreements between states and countries. The Gerdau Group, in addition to supporting the event, presented solutions to rural and urban fencing, as well as products such as Gerdau Oval Wire, Cordage for Corrals, Galvanized Steel Posts and Gerdau Elephant Barbed Wire. Gerdau Easy Shed was also presented, used in rural properties as well as in industry. Gerdau products were presented at the event The Friends of the Countryside Club embraces other initiatives such as a Wire Fencing Project, a practical course that qualifies the participants for the sizing and erection of conventional and electric fences in a more economical and durable manner. Only last year, more than 3,000 sector professionals qualified. Gerdau Voluntary Cup should increase the number of voluntary workers in the country by 10% The Gerdau Institute, responsible for the social responsibility actions of the Group, launched the Gerdau Voluntary Cup in March. Aimed at company employees, the project involves more than 6,000 professionals enrolled in the contest. The solidarity championship will consist of seven tests, just as the Brazilian Soccer Team, which will have seven games in the World Cup this year. More than six thousand people are participating in the Gerdau Voluntary Cup The initiative seeks to stimulate voluntary work among its employees. This year, the number of volunteers should increase as a result of the Cup. "By the end of 2006, around 10% of the professionals who work in Brazil will have performed some kind of voluntary activity. This percentage represents a contingent of about 2,000 people", advises José Paulo Soares Martins, Gerdau Institute Director. The Gerdau Cup is part of the Gerdau Voluntary Program, which stimulates knowledge transfer about total quality and the dissemination of 5S practices in schools and social entities. In addition to this, the professionals can act directly in the improvement of installations such as actions promoted by Commercial Gerdau branches, which support the painting and refurbishment of schools. Activities to stimulate the generation of income and lectures about professions are also among the performance possibilities.
Gerdau Group rises 30 places in the ranking of the most valuable companies in the world The Gerdau Group is among the most valuable companies in the world, with an estimated market value of US$ 8,7 billion. This is according to research carried out by the consultancy Standard & Poor's, published by the North American weekly magazine Business Week. The study was done as part of an analysis of 1,200 of the biggest companies in the world. The Gerdau Group is in 852nd place, 30 positions higher than the 2004 results. The research takes into account the size of the company, its market value, its share liquidity and the relationship between the sector and country performance. Brazil is represented by 15 companies, among 40 evaluated in Latin America. In growth terms, the listed Brazilian companies represented an increase of 74%. Heading the index are the Norwegian companies, whose market value rose by 78%. In third place were the Mexicans, with a 43% growth. Gerdau opens Popular Restaurant in Salvador (in the state of Bahia) The Restaurant has the capacity to serve 350 people per day The Gerdau Group, through the Gerdau Institute, opened the Restaurante Prato Popular (Popular Plate Restaurant) in March, in the São Tomé de Paripe region, in Salvador (capital of Salvador). With this investment, the needy community has access to a healthy meal at a symbolic cost of less than one dolar per person. The space can serve 350 people daily. All menus are controlled by nutritionists and prepared using the best food safety standards. The restaurant is open Monday to Friday, from 11:30am to 13:30pm, except holidays. To benefit from the program, the regional community needs to register with Sesi. In Salvador, the Gerdau Group is responsible for the construction of the building and for the difference between the real value of the food and the price paid by the population. This is the company's eighth popular restaurant in the country. They also support the Municipal Council initiative of the Pastoral da Criança, Sesi and the food company Puras. The needy communities of Sapucaia do Sul (in the state of Rio Grande do Sul), Charqueadas (in the state of Rio Grande do Sul), Araucária (in the state of Paraná), Rio de Janeiro (in the state of Rio de Janeiro), Divinópolis (in the state of Minas Gerais), Recife (in the state of Pernambuco) e Maracanaú (in the state of Ceará) already benefit from their activities.
Constructors from Paraná follow the production of GG 50 Rebar Civil Construction representatives from Curitiba (capital of Paraná) visited Gerdau Group units in Paraná. They followed the steel production process in Gerdau Guaíra, in Araucária, and got to know the Steel Cutting and Folding Center, where the processing of GG 50 Rebar takes place, the principal product for civil construction. There, the rebars are cut and folded in accordance with the structural project of each work, ensuring that the materials arrive ready for use at the construction. "The armature production is totally mechanized whereas in the project it is manual", compares João Luiz Murad, Planning Manager of LN Enterprises, who accompanied the visit. This way, the costs are reduced and productivity The visitors get to know the Guaíra plant increases. The alternative also offers greater and the Steel Cutting and Folding Center security and quality of work. Luciano Ribeiro Pizatto, Supply Manager of DM Construction Works, who was also on the visit, already adopts these products in projects in São Paulo, in Maranhão and in Pará. "The process organization and Gerdau's capacity in servicing the market, catches the attention", points out Pizatto. Gerdau's Pro-Infancy Fund serves as an example for social institutions in São Paulo To increase the amount of financial resources destined for the Municipal Children and Adolescent's Fund, the São Paulo Council organized the 1st Resource Acquisition for Social Projects Seminar in March. The event, which had the support of the Gerdau Group, took place at City Hall and was part of initiatives developed over the past year by the council to strengthen and increase the work of institutions in meeting the needs of children and adolescents. Fund Manager for Pro-Infancy, Clodis Xavier presents the project in São Paulo approved by Municipal or State Councils. By means of the Federal Law, Funcriança, the community can contribute, through income tax, with assisting bodies which benefit needy children and adolescents in risk situations, chemical dependents and those with special needs. Individuals can donate up to 6% of their taxable income and companies, 1%. One of the Fund's differentials is that each donating company or individual can choose which entity it wishes to benefit, whose actions need to be The Pro-Infancy Fund, a project coordinated by the Gerdau Institute, has passed on, since the start of the project in 1999, more than US$ 6,5 million for 123 social institutions in various parts of Brazil, which look after more than 22,000 children and teenagers.
Jorge Gerdau Johannpeter makes a difference The newspaper "O Globo", through the Faz Diferença Award (Make a Difference Award) highlighted the work developed in the economy sector by Gerdau Group's President, Jorge Gerdau Johannpeter. The initiative is an honor to those Brazilians who contributed most, through their work, activities or example to the improvement of Brazil. The journalists of the publication recommended three people who have been highlighted in the pages of the newspaper in each of the 14 categories. Those recommended were submitted to a jury made up of journalists from "O Globo", by the previous year's winners and also by a public poll over the Internet. As well as a member of the Economic and Social Development Council and the Petrobras Administration Council, Jorge Gerdau coordinates Jorge Gerdau was honored by "O Globo" Newspaper the Entrepreneurial Action structural pro-reform movement and gives incentive to social and cultural projects, among other activities. Gerdau AZA Seminar stimulates transparency in Chile Gerdau AZA, situated in Chile, promoted in March a Seminar about Social Responsibility for a group of about 400 Chilean business people and students. The Seminar, which took place in the Economic and Administration Faculty in the University of Chile, was aimed at analyzing the methodology of the sustainability reports. Representatives of the Chilean Assembly of the World Council for Sustainable Development and of the Global Reporting Initiative, participated in the event. As a representative of the Assembly for Sustainable Development, Hermann von Mühlenbrock, Gerdau AZA General Manager, highlighted the importance of publicizing social contributions to society. The executive also pointed out that the sustainability report should communicate not only the generated benefits to the community, but also the points on which the companies have to improve. Hermann von Mühlenbrock, Gerdau AZA General Manager, highlighted the importance of publicizing social contributions to society
Diaco strengthens Brazil's relationship with Colombia Clients from the civil construction area of Diaco, a company that has been part of the Gerdau Group since last year, were welcomed by company representatives at a big gathering in March. The dinner brought together more than 250 people. The meeting began with a company presentation by Diaco's Director, Eduardo Moreti. During the event, there were presentations of typical Brazilian and Colombian dancing, demonstrating that the culture of both countries is drawing ever closer. Diaco is the largest manufacture of civil construction steel in Colombia. Meeting brought together more than 250 people