Gerdau may look to sell Indian assets - BL Report
The Hindu Business Line reported that sources close to the development told BusinessLine that grappling with a whopping USD 7.23-billion debt, Brazil based steel maker Gerdau SA is looking to sell off assets, including those in India, Central and South America.
The report quoted the source as saying that “These assets are considered to be of low return and not very beneficial to the company’s overall operations. Following the sales, Gerdau would look at focusing on US and Brazil operations.”
However the company’s Indian office said in an e-mail response “The company often evaluates opportunities to optimise operations by assessing the best possible ways to develop and grow the business and generate greater returns to our shareholders. There is no decision taken for our operations in India. The business is improving day-by-day and reaching the strategic goals set for the year.”
Gerdau’s largest investment in India is a 300,000 tonne specialty steel plant at Tadipatri in Andhra Pradesh. In 2007, it had entered into a joint venture, called Kalyani Gerdau, with Kalyani Steels to acquire the plant from SJK Steel. While Gerdau and Kalyani held 45 per cent each, the previous owner and financial institutions held the balance 10 per cent. In 2013, Gerdau bought out Kalyani from the joint venture.
The specialty steel supplier produces flat steel and iron ore in Brazil, and is the largest producer of long steel in America, with steel mills across Brazil, Argentina, Canada, Chile, Colombia and Dominican Republic, among others.
Source : The Hindu Business Line