Chile: Brazilian steelmaker Gerdau casts eye on Chilean venture

Gerdau, the Chilean subsidiary of Brazilian steelmakers Grupo Gerdau, has recently made great headway in the construction beam, steel wire and steel profiling markets, with sources close to the company commenting on the company’s plans for exploring a joint venture, or even a straight merger/acquisition, of its Chilean rivals.

Sources point to recent changes in management as clear signs of Gerdau’s intentions, particularly with the departure of General Manager Italo Ozzano, who had replaced former manager Hermann Von Mühlenbrock after he retired in 2013. In his place Gerdau has named Brazilian Crescencio Marcos Vinicius, formerly the company’s Management and Finance Manager. The new manager’s role is presumably to clean up house in order to prepare for an eventual merger.

The revelations come during awkward times for Gerdau involving its outstanding debts. While the firm has managed to keep positive numbers in recent quarters, this has mostly been due to a combination of asset sales and new capital injection from shareholders.

Full Content: La Tercera

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