Issue 46 - Year 03 Read breaking news about the Gerdau Group in the world. Enjoy! Highlights» Gerdau Group announces new corporate governance» Gerdau Group has the best reputation in Brazil» Gerdau Group reinforces its presence in Peru» Gerdau implements electronic invoicing in its Brazilian units» Sidenor concludes the acquisition of GSB Acero» Gerdau highlights the stainless steel line in sector's main fair in Brazil» Gerdau Group and Futura Channel form partnership» 2007 Pan-American Olympic Village counts on Gerdau steel» Gerdau becomes part of the Bovespa Sustainability Index» Chile's main social responsibility award goes to Gerdau AZA» Gerdau is one of Brazil's most admired companies Gerdau Group announces new corporate governance Gerdau Group announced a new stage in the evolution of its corporate governance. It is the fifth succession in its 105 year history and the new governance structure took into consideration the size, complexity and challenges of the Gerdau Group.The new structure will serve as one of the agents for consolidation of the world's steel industry. Gerdau's corporate governance is also considered the best practices of the largest companies worldwide, from studies made with the support of international consultancy firms. On 1st January, André Gerdau Johannpeter will take over the office of CEO (Chief Executive Officer); in place of Jorge Gerdau Johannpeter, who has been Group President since 1983. Simultaneously, Claudio Gerdau Johannpeter will become COO (Chief Operating Officer), a new position with responsibility for maximizing corporate synergies and results through direct action in the Business Operations and over the Functional Processes to which the COO has been assigned. Since 2002, André and Claudio have acted as Executive Vice Presidents. Claudio, Jorge and André Gerdau Johannpeter will take up their new positions in 2007
Gerdau Group has the best reputation in Brazil The Gerdau Group is the company with the best reputation in the country. This achievement is based on research carried out by the Reputation Institute, an internationally recognized organization with a presence in 20 countries. The study analyzed the 20 largest companies in the country, based on gross turnover. The ranking was created with the objective of identifying a general view of the business reputation in each country, in other words, the capacity of businesses to generate value for all of their publics: collaborators, clients, shareholders, suppliers and the community. More than 30,000 on-line interviews with the general public from 25 countries in six continents were carried out for the survey. The analysis involved more than 700 companies. Made up of three stages, the study took into account indices for esteem, admiration, confidence, and affection which the public has in relation to the company. The companies were also evaluated in seven categories, such as products, citizenship and governance as well as another 23 attributes. The study also pointed out the behavior and attitudes of the publics in relation to the companies. As well as being recognized as the company with the best reputation in Brazil, the Gerdau Group also takes first place in this subject among the best steel producers and mining companies in the world. With a total of 74.9 points, the Group is above the global average of all companies of 64.2, and also the sector average of 65.1. Among the highlights which the company received are aspects such as the pride of seeing a Brazilian company expanding internationally, the company being recognized as a good place to work and its social responsibility. Gerdau Group reinforces its presence in Peru In November, Gerdau Group announced the acquisition of another 32.4% of the shares of the Peruvian steel mill Siderperu, located in the town of Chimbote. As a result of this acquisition, the Group owns a total of 83.2% of the steel mill's assets. The purchase of the shares was made through a public auction and with an investment of around US$ 40.5 million. Siderperu produces long and flat steel and posts annual sales of approximately 400,000 tons of finished products. Of this sales total, 80% represents long steel and 20% flat steel. Gerdau implements electronic invoicing in its Brazilian units Gerdau Group is innovating its fiscal processes in Brazil. The company is one of the first in the country to use electronic invoices. This process integrates a pilot-project proposed by the State Treasury Secretaries and the Revenue Service, and is coordinated by the National Meeting of Coordinators and Tax Administrators (Encat). The units of Gerdau Aços Especiais Piratini, in Charqueadas (state of Rio Grande do Sul), of Gerdau Água Funda, in Sao Paulo (state of São Paulo) and of Gerdau Usiba, in Simões Filho (state of Bahia) are the first to utilize the system. The new model, with security and legal validity guaranteed by means of digital certification, will simplify the information provided by the tax payers and will also allow the tracking of commercial operations by the State and Federal Treasuries. The system also guarantees security of information, as well as ensuring more efficient and trustworthy transactions for the tax payer.
Sidenor concludes the acquisition of GSB Acero Sidenor, the Spanish steel mill of which Gerdau Group owns 40% of the shares, finalized a deal with CIE Automotive for the acquisition of the total shares of GSB Acero. The operation amounts to an investment of approximately 122.5 million. GSB, located in Guipúzcoa in Spain, produces approximately 200,000 tons of specialty steel per year. Sidenor Steel, first Gerdau Group unit in Europe Gerdau highlights the stainless steel line in sector's main fair in Brazil The stainless steel line produced by the Gerdau Group was the highlight of the Stainless Steel Transformation Technology Fair (Feinox), which was held in São Paulo in November. Around 3,000 people took part in the event. The stainless steel, produced by Gerdau, is used in the manufacture of parts and accessories for applications in the oil, chemical, food, dental and medical industries. Among the material's differentials are its durability, corrosion resistance and transformation ability. Gerdau Group's stand at the fair in São Paulo Gerdau Group and Futura Channel form partnership Gerdau Group is the newest partner of Futura Channel, a television broadcaster in Brazil. The partnership is one of the projects supported by the Gerdau Institute. The channel, from the Roberto Marinho Fundation and Rede Globo, aims its broadcasting at the subject of education in Brazil. Apart from being transmitted in a closed membership system, the channel's programs are made available to more than 12,000 institutions made up of schools, nurseries, prisons, hospitals, health centers, universities, libraries, NGO's, syndicates, companies and public bodies; all of whom benefit from the station's educational programs. Last year, the Gerdau Institute allocated R$ 41.1 million in resources for 604 social organizations throughout Brazil. In 2005, the Gerdau Group supported 414 projects, which benefited 604 organizations and 7.3 million people in 178 Brazilian municipalities. The Gerdau Institute supports several educational projects in Brazil
2007 Pan-American Olympic Village counts on Gerdau steel Gerdau's steel is present in the Athletic Village that was built for the 2007 Pan-American Games in Rio de Janeiro. The village will house the approximately 5,000 athletes who will be participating in the Games next year, from July 13th to 29th. The Brazilian delegation will be comprised of 720 athletes and 234 officers; among them managers, trainers and doctors. In total, about 1,000 people are expected. The village's flooring structure includes Gerdau Ribbed Mesh and Cut and Folded GG50 Rebar. The advantage of these products is that they arrive at the site ready-to-use and are manufactured in a totally mechanized way, thereby guaranteeing better quality and safety. Another advantage is the elimination of losses through leftovers and the reduction in the final cost of the building. As a result, the project gains efficiency, productivity and economy. The products used in the Olympic Village guarantee the project's efficiency, productivity and economy Gerdau becomes part of the Bovespa Sustainability Index Gerdau's publicly listed companies in Brazil - Gerdau S/A and Metalúrgica Gerdau S/A - are included in the new portfolio of Bovespa's Differentiated Business Sustainability Index (ISE). Created in 2005, the index brings together companies that have demonstrated commitment to sustainability. The ISE groups together the shares of 34 companies from 14 economic sectors. These companies have a total market value of approximately R$ 700 billion. In its first year, ISE shares have shown an increase in value of 28.6%, while Ibovespa, which includes shares of the 56 most negotiated companies on the São Paulo Stock Exchange, grew 25.3%. To form part of the index, the companies are selected based on an analysis of their profitability and of how they deal with socio-environmental questions. This information was compiled from a questionnaire comprised of around 150 questions that was sent to the companies. The companies that get good scores in all categories join the index. Chile's main social responsibility award goes to Gerdau AZA Gerdau AZA, Gerdau Group's plant in Chile, received the principal honor of the Social Responsibility Sofofa Award. Given by the Chilean Industrial Advancement Society, it is the country's most traditional and respected recognition in this sector. The winners are chosen based on criteria such as the company's sustainable trajectory, reputation, good relationship between the company and its public and the exercise of social responsibility as an integral part of the business. Among the Gerdau AZA projects in the social responsibility area, the highlight was the Cerro Calan reforestation program; an ecological reserve of around 30 hectares that will receive, by the end of 2007, 16,000 native tree seedlings. Cerro Calan reforestation project is one of the Gerdau AZA highlights in the social responsibility area
Gerdau is one of Brazil's most admired companies In November, The Carta Capital Magazine published the ranking of the most admired companies in Brazil. The Gerdau Group is among the first five companies listed in the ranking and was also the winner in the metallurgical and steel producing category. The winning companies were chosen by a group of Brazilian Executives, who voted for them based upon an analysis of eleven issues. Among the issues evaluated were innovation, the commitment to Brazil, social responsibility and economic solidity. The survey is in its eighth edition and evaluates companies from 43 economic sectors.