Gerdau acquires steel producer Sizuca

Monday, June 18, 2007

Brazilian long steel producer Gerdau (NYSE: GGB) signed on Monday an agreement to acquire 100% of Venezuelan steelmaker Siderúrgica Zuliana (Sizuca) for US$92.5mn, Gerdau said in a statement.

Sizuca produces concrete reinforcing bars and has installed capacity of 300,000t/y of crude steel and 200,000t/y of rolled products. "This acquisition is part of Gerdau's growth strategy in the Americas and ensures its presence in a country with relevant economic growth," the statement said.

Porto Alegre-based Gerdau operates in Argentina, Brazil, Chile, Colombia, Peru, Uruguay, the US and Spain, and announced this year plans to acquire assets in Mexico and the Dominican Republic.

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