A PYMNTS Company

Brazil: Steelmaker Gerdau reveals plans for venture with Japanese rivals

 |  February 2, 2016

Brazilian steelmaker Gerdau SA has announced the launch of a new branch, dedicated to producing equipment used in wind farms. The project will be a joint venture between Gerdau and Japanese steelmakers Sumitomo Corp and Japan Steel Works Ltd.

The companies will make an initial investment of close to $68 million for purchasing the necessary equipment. The new company will be owned at least 50% by Gerdau at all times, the company revealed.

The sale is part of a 2015 initiative seeking to improve the company’s competitiveness. The new factory will be located on Gerdau’s property outside Sao Paulo, with production expected to begin in 2017, pending the approval of Brazilian and Japanese competition authorities and regulators.

Full content: See News

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.