Gerdau to sell Brazilian power units to Kinross for $255 mln

Gerdau has entered into a deal with Kinross Brasil Mineração to sell its two hydroelectric plants in Brazil’s mid-western Goiás state for 835 million Reais ($255 million), as a further step in its strategy to focus on profitable steel assets, it said late on Wednesday February 14.

The Caçu and Barra dos Coqueiros hydroelectric power units, which started operations in 2010, have total capacity of 155 MW.

The transaction with Kinross Brasil Mineração, a wholly-owned subsidiary of Canadian mining company Kinross Gold Corp, is subject to regulatory clearances and customary closing conditions, the Brazilian steelmaker said.

“The hydroelectric power plants divestment is one more important step in our divestment plan, aligned with the strategy to focus on our most profitable assets in the steel segment,” chief executive officer Gustavo Werneck said in a statement.

Gerdau is conducting an assets sales programme and has raised 6 billion Reais from divestments in the past four years, including the deal with Kinross, it said.

This year, the company announced the sale of its wire rod mill and two downstream facilities located in Texas, United States, to Optimus Steel, as well as the sale of some of its rebar production units in the US to Commercial Metals Co (CMC).

Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world.

In Brazil, where the firm is based, Metal Bulletin’s monthly price assessment for Brazilian rebar was 2,200-2,400 Reais per tonne delivered on Friday February 9, stable on a monthly basis.

What to read next
Fastmarkets is proposing a realignment of its dealer selling price for ferrous scrap machine shop turnings in Houston, effective from the September 2022 monthly settlement.
Participants in the US steel market were divided on the impact of a price increase from Nucor’s sheet mill group this week, with some suggesting hot-rolled coil prices could fall further while others were optimistic that announcement could halt - or even reverse — the recent downtrend
Chromite prices rose further in the two weeks to Tuesday May 31 on support from cost pressures and logistical issues in South Africa
UG2/MG chrome ore prices experienced major declines in the week to Tuesday July 12, dropping by $15 per tonne week on week, as the market saw the beginnings of a break in the continuing stalemate of recent weeks
The European charge and high-carbon ferro-chrome benchmark for the third quarter of 2022 has slumped by 16.7% from the previous quarter’s settlement to $1.80 per lb
Executives at major flat-rolled steel producers in the United States discussed three common themes during their companies’ earnings calls for the second quarter of 2022, sharing views on a potential recession, affects from recent government policy changes and trends in steel raw materials
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.