Gerdau has decided to reduce its investments in Brazil in the coming years, due to the disappointment with the lack of trade defense measures by the federal government. The announcement was made official on Friday (01) by the company’s executive president, Gustavo Werneck, after the publication of the second quarter results.
“The decision is made. It is very disappointing, after 12 months, we do not see hard measures being taken by the MDIC [Ministério do Desenvolvimento, Indústria e Comércio]”Gustavo Werneck lamented
At a press conference, the executive pointed out that, since the beginning of the year, the company has laid off 1,500 workers in the country in the face of imported steel pressure. Last year, Brazil adopted a quota and tariff system to try to reduce steel imports. However, trade policy was considered insufficient because it was unable to limit the entry of steel products in China.
According to the executive, the investments provided for this year will be maintained and the reduction of the flow will occur from next year. In August and September, Gerdau is expected to evaluate its future investment strategy and publicize the conclusion at a meeting with investors in early October. The company’s chief financial officer, Rafael Japur, said that $ 4 of the $ 6 billion of global investments expected for this year are focused on Brazil.
