Gerdau Group CEO Gustavo Werneck announced during an analyst conference that the company will cut its 2026 investment plan in Brazil from BRL 6.0 billion to BRL 4.7 billion (USD 1.12 billion → USD 875 million), while increasing investment in the US.
The group will prioritize the 150,000 mt/year capacity expansion of its Midlothian plant in Texas, citing that US steel import tariffs are reshaping the market and creating opportunities for local expansion.
Werneck pointed to weak Brazilian market conditions caused by subsidized Chinese steel imports, which have surged to 6.2 million mt/year, exceeding Gerdau’s own capacity.
In Brazil, Gerdau will focus on:
-
Expanding iron ore output at the Miguel Burnier mine (Minas Gerais) to add 2 million mt/year for third-party sales.
-
Boosting scrap recovery at the Pindamonhangaba plant in São Paulo.
Exchange rate: USD 1 = BRL 5.37 (Oct 1)
VietnamSteel by Hoa Sen Group
