Gerdau, a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world, on Monday announced majority ownership of its first plant in Asia at Tadipatri in Ananthpur district, Andhra Pradesh, and change of the operation name from Kalyani Gerdau to Gerdau.
In 2007, Gerdau entered into a joint venture with Kalyani group company - Kalyani Steels Limited - to acquire SJK Steel Plant Ltd. with an equal partnership of 45% each to form a JV. Post acquisition of Kalyani's shares, the operation is now majority owned by Gerdau.
Recently, the plant started operations of its blast furnace, melt shop, sinter plant, power plant and rolling mill. It has an installed capacity of 300,000 tons of special steels, mainly focused on the automotive market.
"This is a new and very important chapter in Gerdau's history. As we begin our 112th year of business, the start of the production of special steel in India represents our expansion to an important country, with an impressive cultural richness, good economic prospective and very dedicated people," said Andre' B. Gerdau Johannpeter, Gerdau's CEO.
"This move paves way for Gerdau to come to India and cater to the domestic market to the benefit of our customers and improve over all standards in quality of steels manufactured in the country," said Arvind Mathur, Executive Director-India for Gerdau.