Gerdau announces end of steel production at the Divinópolis factory

g1 asked the company about the number of people who will be laid off and whether the factory will continue to operate with other production, but did not receive a response until the last update of the report.

The company attributed the measure to the loss of competitiveness of the operation, mainly due to the lack of supply of iron ore at competitive costs, the increase in steel imports and unfavorable conditions in the international market.

According to the company, the scenario is also influenced by the increase in steel imports in the Brazilian market and unfavorable conditions in the international market, especially for exports. According to the company's statement, sales abroad have historically played a relevant role in the unit's operations.

The decision is part of a strategy to reorganize Gerdau's activities in Brazil. The company states that it intends to concentrate production in units considered more competitive and efficient, with a higher technological level, to guarantee the sustainability of the business in the long term.

In the position sent to the press, Gerdau points out the difficulty in accessing iron ore at competitive prices as one of the main factors for the closure of production in Divinópolis.

The raw material is used in the manufacture of steel and, according to the company, the lack of favorable supply conditions has put pressure on operating costs.

Another factor cited is the increase in the entry of imported steel into the Brazilian market. The company also mentions the unfavorable international scenario, especially for exports, which historically contributed to the performance of the Minas Gerais unit.

Gerdau also informed that it is evaluating alternatives to support professionals impacted by the decision. Among the measures considered is the transfer of part of the employees to other units of the company.

The company also plans to offer technical qualification courses and workshops aimed at preparing workers for new opportunities in the job market.

With the decision, Divinópolis City Hall announced that it will launch, throughout this week, a program to reduce the impacts of the closure of Gerdau's steel production on workers and businesses in the city.

Municipal studies indicate that the unit can represent up to 15% of the ICMS transfer. Furthermore, in the Interlagos and Porto Velho neighborhoods, around the factory, there are more than 2 thousand companies, 93% of which are micro-enterprises, which increases the concern about the effects on suppliers, transporters, commerce and service providers.

Mayor Janete Aparecida stated that the priority is to support those affected, monitor the production chain and defend the local economy. According to her, the municipality will intensify dialogue with the productive sector and adopt measures within its possibilities, without making promises that do not depend on the municipal administration.