Wirenet Image Band
wirenet.org mobile image band

Wire Journal News

Gerdau to sell its Beaumont wire rod mill to Optimus

Brazil’s Gerdau S.A. has agreed to sell Optimus Steel LLC its wire rod mill in Texas, and two downstream facilities, for $92.50 million.

A press release said that the deal will include Gerdau’s wire rod mill in Beaumont. The mill has a melt shop capacity of approximately 700,000 tons, and is capable of producing both wire rod and coiled rebar. The sale also includes two downstream facilities: Beaumont Wire Products and Carrollton Wire Products. Beaumont Wire Products. The former was described as a wire mesh mill and the latter as a supplier of industrial wire into the greater U.S. southern region.

The news follow a previous announcement by Gerdau of the sale of four rebar mills and nearly three dozen downstream facilities to Commercial Metals Company for US$600 million. Once the two separate deals close, Gerdau, which was part of a recent trade case seeking to limit the in-flow of low-cost imported wire rod, will be out of that sector.

Gerdau Chief Executive Gustavo Werneck said that the company will “focus on more value-added products.” It will continue to have a considerable presence in North America, with 18 facilities, 15 in the U.S. and three in Canada that produce merchant steel, structural steel and some rebar.

Read 3640 times Last modified on March 9, 2018