Ian Mundy, Kayla Reddington, Lauren Smith, Laura Watts

Global and National Environment

• Quality Focus• Political Factors• Economic Factors• Social Factors • Technological Factors

Global and National Environment

• Quality focus: – Quality improvement and excellence.– Internationally recognized.

Global and National Environment

• Political Factors:– International Rules and Regulations • Acquisition of Century Steel

Global and National Environment

• Economic Factors:– Steel Industry– China– Chile’s key advantages– Main objectives:• Increase SOL• Eliminate shortages• Stimulate secondary steel industries• Domestic focus

Global and National Environment

• Social Factors:– CSR Policy• Social Evaluations• Funded 592 social projects in 2002• HR Management Practices

– Educational visits• Commitment• Recruitment

Industry Analysis

• Gerdau AZA is one branch of The Gerdau Group• A diversified company• 24. 8 million metric tons of steel each year• Ranked 14th in the world • Exports steel to all seven continents.

Industry Analysis

• Product Categories:– Agricultural products– Civil construction products– Industrial products– Specialty steels

Industry Analysis

• Major Competitors:– Universal Stainless and Alloy Products• Manufactures specialty steel products for aerospace,

petrochemical, and heavy equipment industries.

– Nucor Corporation• Manufacture a variety of steel products primarily in

the U.S. and Canada. It is North America’s largest recycler.

Industry Analysis

– Arcelor Material• The world leader in steel production with 10% of the

world’s steel output. It also has plants in 60 countries and a strong presence in the automobile, construction, and housing appliance markets.

– Quanex Corporation• Based in Houston, Texas, it is a leading manufacturer of

engineered materials for building and vehicular products.

Industry Analysis

• Industry Challenges: – Pollution: air, water, soil• Gerdau is always developing better technology• Dust removal systems to filter particles and gases• 97% of the plant’s water is reused• Reduction of residue generation of electric furnaces

Industry Analysis

• Opportunities:– Relatively perpetual demand– Abroad opportunities• Recognizable brand name

Industry Analysis

• Gerdau 2007– Sales Revenue: $34.2 billion• 18.5% growth

– Net Profit: $4.3 billion• 11.9% growth• 60% of profit comes from abroad

Recycling

• Steel is the most recycled material in the world• The average scrap recycling rate in Chile is still

low• A majority of their raw materials come from:– Home appliances– Vehicles and vehicle parts– Industrial by-products– Steel cans

Recycling Process• Step 1: Recycled scrap metal is grinded• Step 2: Metal is then melted down to base

components• Step 3: Poured into flat bars• Step 4: The bars are sent through the oven

(uniform temp of 1200⁰C)• Step 5: Sent through a set of two perpendicular

rollers. Either sent to be shaped into: type of bar shape, or compressed and elongated into wire shape.

Products

Type• Steel Rebar• Angular Steel Bar• Star Shaped Bar• Round Bars

• Wire Rod

Application• Concrete building• Reinforcement of rocks• Safes/metallic carpentry• Formed into bolts, screws,

and rivets• Electrical wire/nails

Materials Transport

• Raw materials are shipped in by truck from various recycling companies

• Finished product is shipped out by numerous distributors

Major Distributors

• Barraca de Fierro Andrade (Iquique, Chile)• Barraca de Fierro Andrade (Africa)• Comercial El Bosque (Iquique, Chile)• Prodalam (Iquique, Chile)• Sack (Iquique, Chile)• Sodimac (Iquique, Chile)• Steel Nort (Africa)

Safety Issues

• Regulated by OHSAS 18001:– International Health and Safety Management

System– Aspects cover:• Training• Risk assessment• Fire protection• Hazardous material• Etc.

Work Requirements

• Engineers:– Professional Engineering Degree– Minimum of 3 years work experience with

processes– Risk assessment management skills

• Plant Operator– No degree required– Minimum 1 year experience with process– No special skills required

Achievements

• Some awards:– 10th Greatest Place to Work (2007)– Social Responsibility Award (2006)– Efficient Energy Award (2006)– National Environmental Award (2001)– Clean Production Award (1999)