Visions - Summer 2017 - 12

BRAZIL

Forging Ahead in Steel Production
with Gerdau Summit Venture

O

	n Tuesday, March 28th, Sumitomo Corporation (SC), Gerdau and The Japan Steel Works (JSW) held a
launch ceremony to celebrate the Gerdau Summit joint venture between the three companies in Sao
Paolo's Pindamonhangaba municipality. With projected investments of $130 million by the three
companies, SC is proud to partner with Gerdau, the largest steelmaker in South America, and JSW, one of the
world's largest forging steelmakers, known worldwide for its use of high-end technologies.
Gerdau had been looking for partners to jointly develop wind-power forgings, so Sumitomo had been
requested by its U.S. wind customers to establish
local production of these materials in Brazil to meet
the country's demand. This joint venture operation
is predicted to increase growth for the partners
through the production of components in three
areas: forged parts for the wind sector, castings and
forgings for other segments, and rolling mill rolls.
To meet this demand, Gerdau Summit should
be creating approximately 100 new jobs in
Pindamonhangaba.
The new venture, announced last year, will have a
capacity for production of up to 50 thousand tons of
product per year, aimed at serving not just the wind
energy sector, but diverse industries such as the sugar
and ethanol, oil and gas, and mining. The production of materials specifically for the wind sector is
expected to begin in early 2018.
Prospects for Brazil's local wind sector are promising. According to the Brazilian Association of Wind
Energy, the country has about 430 wind farms and,
by 2020, another 330 wind "parks" will be built. The
wind capacity that is currently installed in Brazil
accounts for 7% (10.7 GW) of the electric power
matrix. By 2020, it should reach 11% of participation (17.4 GW).
But what does this joint venture mean for Sumitomo Corporation in South America, and for the
company's wind energy projects overall? Naohiro
Yoshimura, Director & Department Head, Transportation & Construction Department in Brazil, said
the intention is twofold for this investment, with an
eye toward expansion.

12

visions

Summer

2017

Above, pictured from left to right: Dr. Takashi Shibata, Director,
Managing Executive Officer, Head of the Steel Business Div., The
Japan Steel Works, Ltd.; Mr. Takeshi Murata, Executive Officer & GM,
Ship, Aerospace & Transportation Systems Div., Sumitomo Corporation; Mr. Guilherme C. Gerdau Johannpeter, EVP, Gerdau S.A.

"One intention is to acquire a leading position in
the Brazilian market for supplying mid- or largesize forging products," Yoshimura explained. "The
other is to build a strong partnership with Gerdau.
Gerdau is a sound and stable company, and we look
to share the same growth strategy. Although we
are starting with wind turbine forging production
based on the strong request for localization from
our wind turbine customers like GE, our goal is to
take advantage of the broad industrial growth of this
country through diversification and expansion of
our products."
"The time is right for this joint venture because
the three partners all bring great value to the table.
Gerdau brings their existing operation together with
their competitive raw material. JSW brings its world



Table of Contents for the Digital Edition of Visions - Summer 2017

Contents
Visions - Summer 2017 - Contents
Visions - Summer 2017 - 2
Visions - Summer 2017 - 3
Visions - Summer 2017 - 4
Visions - Summer 2017 - 5
Visions - Summer 2017 - 6
Visions - Summer 2017 - 7
Visions - Summer 2017 - 8
Visions - Summer 2017 - 9
Visions - Summer 2017 - 10
Visions - Summer 2017 - 11
Visions - Summer 2017 - 12
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