About Metalurgica Gerdau

Metalurgica Gerdau S.A., through its subsidiaries, engages in the production of long steel. The company has 231 industrial and commercial facilities, four joint ventures and one associated company. It operates in Brazil, Argentina, Chile, Colombia, Peru, Uruguay, the United States, Canada and Spain. The company supplies steel for the civil construction, industrial and agricultural sectors. It recycles approximately 10.4 million metric tons of steel scrap per year, transforming unwanted material into new products. Business Long Steel Brazil The company’s Gerdau Sao Paulo mill is the rebar producer, with the capacity to produce 900,000 metric tons of steel and 600,000 tons of rebar for the civil construction sector. In Brazil, Comercial Gerdau serves as a sales channel for long, flat and specialty steel products made by the company and other manufacturers. With its 68 stores located throughout the country, Comercial Gerdau is the main distributor of steel in Brazil and carries a range of products for civil construction, industry, metallurgy and agriculture. Comercial Gerdau also provides value added services, such as fabricated reinforcing steel and flat steel processing. Specialty Steel (Brazil and Spain) The company, in 2006, acquired 40 percent of the capital stock of Corporación Sidenor, the main producer of specialty steel in Spain. Gerdau speciality steel is used mainly in the manufacture of auto parts. Gerdau steel is found in the engines, gearboxes, steering and suspension systems of automobiles, trucks, buses, motorcycles and tractors. Açominas Gerdau Açominas, the company’s main mill, is installed in Ouro Branco, in the Brazilian state of Minas Gerais. The mill's installed capacity is approximately 3 million metric tons. The steel produced by Gerdau Açominas is used mainly in the civil construction, naval and automotive industries and in domestic appliances and forged parts. Gerdau Açominas also produces high carbon steel wire rod for the specialized market sector. Among other applications, high carbon steel wire rod is used in PC Wire, which increases the resistance of concrete in large construction works, as well as Bead Wire, used in tires. South America (Argentina, Chile, Colombia, Peru, and Uruguay) Siderperu, a steel mill, is operated by the company in Peru. Diaco’s annual production capacity is 530,000 metric tons. In Uruguay, Laisa's capacity is 100,000 metric tons. In South America, Gerdau steel was used for major construction works, such as the TransMilenio project, a system of bus corridors built in Bogota. North America Gerdau Ameristeel extended its operation range to the U.S. West Coast through a joint venture with Pacific Coast Steel, a major supplier of fabricated reinforcing steel for civil construction in that country. Callaway Building Products, producer of fabricated reinforcing rebar, provides higher value added steel products for civil construction. The acquisition of Fargo Iron and Metal Company (North Dakota) increased the capacity to store and process scrap, a raw material for the production of steel. The company launched Zbar, a solution in steel to be used in bridges and other building structures exposed to harsh weather and adverse conditions. Zbar is a value added rebar product coated with layers of zinc and polymers. The coating protects the bars from corrosion and increases the durability of the structures. Gerdau Ameristeel products are used in various construction projects, hospitals, buildings, water treatment stations, and bridges throughout North America. Banco Gerdau In Brazil, Banco Gerdau (Gerdau Bank) develops financial products and services to meet the financing needs of customers and steel market suppliers. In 2006, it served 719 customers through approximately 270 operations related to investment funds and deposit certificates and 450 credit operations.