Highlights. Issue 45 - Year 03. Read breaking news about the Gerdau Group in the world. Enjoy!

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Issue 45 - Year 03 Read breaking news about the Gerdau Group in the world. Enjoy! Highlights» Internationalization boosts Gerdau Group turnover» Structural Engineering Talent Award announces the winners» Gerdau Ameristeel announces joint venture with Pacific Coast Steel and Bay Area Reinforcing» Gerdau Products receive civil construction award in Brazil» Gerdau helps to improve the management of schools in Ceará (state in the Northeast of Brazil)» Gerdau Group social responsibility project is model for Fiesp program» International management award highlights practices of Gerdau Açominas» Gerdau Ameristeel Knoxville starts to operate using biodiesel» Civil construction fair in Argentina highlights Gerdau products» Gerdau AZA launches a civil construction manual Internationalization boosts Gerdau Group turnover The consolidation of new steel producing companies in 2006, combined with the increase of sales in the Brazilian market, grew Gerdau Group turnover by 5.3% compared to the first nine months of 2005, from R$ 19.6 billion to R$ 20.6 billion. From this year, the Gerdau Group also includes Siderperú (Peru) and Sheffield Steel Corporation (USA). In addition, the Gerdau Group became a 40% shareholder in Corporación Sidenor (Spain) and, at the end of 2005, acquired Diaco (Colombia) and assumed control of Sipar Gerdau (Argentina), which also impacted positively on the nine month performance. Of the total turnover, 46.1% was generated in Brazil, 42.0% in the United States and Canada, 9.0% in the other South American countries and 2.9% in Spain. From January to September, non- Brazilian currency turnover, originating from units outside Brazil and exports from Brazil, represented 62.0%. Gerdau Group's physical sales reached 11.1 million tons, a volume 9.5% greater than that registered in the first nine months of 2005. Brazilian operations sold 4.6 million tons, 3 million of which was in the internal market, a confirmed 12.8% sales growth. In North America, physical sales grew 6.5%, from 4.9 million tons to 5.2 million tons. The units in Argentina, Chile, Colombia, Peru and Uruguay totaled sales of 1.1 million tons, 137.6% up. 203,000 tons were sold in Spain, a volume which corresponds to the Gerdau Group shareholding. Structural Engineering Talent Award announces the winners Six structural engineering professionals were highlighted by the Structural Engineering Talent Award. The award is promoted by the Gerdau Group and the Brazilian Association of Engineering and Structural Consultancy (Abece) and recognizes professionals who have developed outstanding structural engineering projects over the last five years. Divided into three categories buildings, works of art and innovative solutions the award was contested by 84 engineers, 30 more than last years event. A winner and an honorary mention were awarded for each category. Those in first place won a trophy and certificate, as well as flights and accommodation for Construmat, the civil construction fair which takes place in Barcelona from 14 to 19 May 2007. The professionals honored with an honorary mention received a plaque and a certificate. The award ceremony was held in Sao Paulo in October, and was attended by Gerdau Group's President, Jorge Gerdau Johannpeter. There were also 300 invited guests, among them engineers and representatives from construction companies.

Check the list of winners: Categoria Vencedor Projeto Edificações Obras de Arte Soluções Inovadoras Ricardo Leopoldo e Silva França Roberto de Oliveira Alves Flávio Correia D'Alambert Edifício E-Tower, em São Paulo Ponte sobre o Rio Orinoco, na Venezuela Centro de Convenções World Trade Center, em São Paulo Menção Honrosa Jefferson Luiz Andrade José Luiz Cardoso Sérgio Osório Projeto Aeroporto Internacional dos Guararapes, em Pernambuco Ponte sobre o Rio Doce em Colatina, no Espírito Santo Armazém da Fábrica de Fertilizantes Nitrogenados de Laranjeiras, em Sergipe The 4th edition of the Structural Engineering Talent Award recognized six professionals Gerdau Ameristeel announces joint venture with Pacific Coast Steel and Bay Area Reinforcing Gerdau Ameristeel, responsible for the North American operations, announced the conclusion of the purchase of the controlling shares of Pacific Coast Steel, a joint venture focused on the civil construction market. North American Pacific Coast Steel (PCS) and Bay Area Reinforcing (BAR) form part of the joint venture and are among the largest suppliers of cut and folded steel in the Unites States. PCS and BAR have four cutting and folding plants in the state of California. The total capacity of the service centers amounts to more than 200,000 tons per year.

Gerdau Products receive civil construction award in Brazil GG 50 Rebar and the Gerdau Nails line were the materials highlighted by the construction resellers of Brazil as the best products of the year. The research was carried out by the Construction Reseller Magazine and heard from more than 2,500 professionals throughout the country. The ranking reveals the products that most benefit shop owners in 73 categories. Among these benefits, issues such as quality, profitability and fast turnover were highlighted. The award recognized Gerdau products as the best for Brazilian shop owners Gerdau helps to improve the management of schools in Ceará (state in the Northeast of Brazil) Gerdau Group, through the Gerdau Institute, is running the Management for Schooling Success (GSE) project in the town of Maracanaú (in the state of Ceará). The object of the initiative is to improve the quality of teaching in the town's public schools and, in so doing, reduce school truancy rates in the region, which runs at 25.9%. The project will qualify school managers through theoretical and practical training. This will benefit more than 16,000 students from 20 public schools in the town. Fundação Lemann, Instituto Razão Social and IBM also support the GSE project. In the first phase of the project, students underwent a performance diagnosis so that each school could define their own improvement strategies. The second stage, already in place, is a 10 month qualifying course for the schools directors. Divided into five modules, the course will be administered through participating meetings and on-line training. Among the subjects covered are school and community team mobilization, tools for identifying students' strengths and weaknesses and actions for the development of student's abilities. Gerdau Group social responsibility project is model for Fiesp program The Gerdau Professionals Pro-Infancy Fund served as an example for an initiative launched by the Industries Federation of the State of Sao Paulo (Fiesp) in October. The object of the project, promoted by the Gerdau Institute, is to stimulate donation of resources to social organizations by diverting part of the income tax. One of the Fund's differentials is that each donating company or individual can choose the entity to be benefited. In this way, it is possible to meet the needs of children and teenagers in risk situations, chemical dependents and those with special needs. Gerdau is donating income tax due simulation software to Fiesp to ease the donation procedures. Donators navigate the page and can see all current social projects of the Children and Teenagers Rights Fund. In Sao Paulo alone, the collection potential is R$ 400 million per year. The Gerdau Group's project has already served as a model for social responsibility actions of the Industries Federation of the State of Rio Grande do Sul (Fiergs), the Industries Federation of the State of Paraná (Fiep), the Industries Federation of the State of Bahia (Fieb), of the Government of the State of Ceará, among others.

The Gerdau Group's Vice-President, Frederico Gerdau Johannpeter, presented the Gerdau Professionals Pro-Infancy Fund International management award highlights practices of Gerdau Açominas Gerdau Açominas, Gerdau Group's plant in Ouro Branco (in the state of Minas Gerais), won the Balanced Scorecard Hall of Fame award, Latin American section. The recognition is one of the most important worldwide awards of excellence in strategy management. With this achievement, Gerdau Açominas joins the other 37 companies throughout the world that have already reached this level of excellence. The Balanced Scorecard Hall of Fame is an annual award given by the Balanced Scorecard Collaborative to organizations that stand out by achieving results through the Balanced Scorecard (BSC) methodology. Omar Fantoni, Gerdau Açominas' Planning and Human Resources Director, receives the Bscol Hall of Fame trophy from David Norton, one of the creators of BSC Gerdau Ameristeel Knoxville starts to operate using biodiesel The Gerdau Ameristeel Knoxville steel mill, in Tennessee (USA), adopted biodiesel as an important energy source in the industrial area. It is the first of Gerdau Group's North American plants to utilize this input as a fuel. 37 machines are driven by biodiesel, from welding to packaging equipment, such as stacking machines, cranes and loaders. A locomotive and two vehicles also use the biodiesel. The input is a biodegradable fuel produced from animal fat or vegetable oils and is also considered both clean and renewable.

Civil construction fair in Argentina highlights Gerdau products Sipar Gerdau, Gerdau Group's plant in Argentina, took part in the 2006 edition of the Technology Materials for Construction Annual Fair (Fematec). The event was held in Buenos Aires and attracted more than 100,000 visitors and 2,000 businessmen and professionals from countries including Uruguay, Chile and Brazil. Civil construction line products such as wire fencing, nails and mesh were presented on the Sipar stand. The company also showed an informative video about its production processes and held a gift draw for the fair's participants. Draws were held and gifts distributed on the company's stand Gerdau AZA launches a civil construction manual Gerdau AZA launched the Calculation Manual for Reinforced Concrete Rebar, providing information about the design and calculation of structural projects and utilizing concepts based on the Chilean code for the sector. The material is available to professionals on the Gerdau AZA website (www.gerdauaza.cl) Compiled by recognized Chilean engineers, the manual is in its second edition. The launching ceremony was held in the presence of more than 500 people, among them engineers and students. The launching of the calculation manual brought together more than 500 people