Gerdau launches feasibility study for new production unit

Gerdau has taken a step to address optimistic projections in the country's automotive industry and supply chain challenges during the pandemic. The company has started feasibility studies to build a new unit with a production capacity of up to 600,000 tons per year.

Gerdau's move follows a 3.3% production increase in its specialty steel business, despite a 2.8% drop in first-quarter crude steel production in North America. This increase in the specialty steel business, driven in particular by automobile production in Brazil, motivated the company to build a new production unit.

Mexico's auto sales to the US increased by 0.9% in March, while first quarter auto exports rose by 1.9% y-o-y.