Gerdau shuts down steel production at Divinopolis plant
2026-11-04 11:39:46 [Print]
Brazilian steelmaker Gerdau has decided to shut down steel output at its Divinopolis plant in Brazil's southeastern state of Minas Gerais, the company 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 aligns with Gerdau's strategy to concentrate steel production in Brazil in more competitive, efficient, and technologically advanced assets, the company said.
Gerdau has operated an integrated steel mill at Divinopolis since 1994, combining blast furnace, steelmaking, and rolling mill operations, the company said. The plant has a nominal crude steel production capacity of 600,000 tons per year and uses the blast furnace-oxygen converter (BF-BOF) process. In recent years, actual annual output has fluctuated between 425,000 and 460,000 tons.
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 aligns with Gerdau's strategy to concentrate steel production in Brazil in more competitive, efficient, and technologically advanced assets, the company said.
Gerdau has operated an integrated steel mill at Divinopolis since 1994, combining blast furnace, steelmaking, and rolling mill operations, the company said. The plant has a nominal crude steel production capacity of 600,000 tons per year and uses the blast furnace-oxygen converter (BF-BOF) process. In recent years, actual annual output has fluctuated between 425,000 and 460,000 tons.
