Brazilian steelmaker Gerdau (BVMF: GGBR4) decided to shut down steel output at its Divinopolis plant, located in Brazil’s southeastern state of Minas Gerais, it said on Tuesday.
The plant lost competitiveness as the lack of access to iron ore at accessible prices pressured production costs, Gerdau said in a statement.
The firm also cited higher steel imports into Brazil and unfavorable market conditions for exports — “an important component of the unit’s operations.”
The measure is aligned with Gerdau’s strategy to concentrate steel production in Brazil in more competitive, efficient, and technologically advanced assets, the firm said.
Gerdau has been in Divinopolis since 1994 operating an integrated steel mill that combines blast furnace, steelmaking, and rolling mill operations, the company said.
(Reporting by Alberto Alerigi Jr. and Andre Romani in Sao Paulo, Editing by Iñigo Alexander)
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