Water reserves at hydropower plants are already at their lowest level in 91 years of records, and Brazil is at risk of rationing and blackout. Gerdau draws a strategy for this crisis. According to Marcos Faraco, head of Gerdau’s operations in South America, the company has been working at full capacity to serve customers and increase steel inventories. “This is a point of attention, and we are closely monitoring how it will play out. But it is important to understand that this crisis is more severe in the Southeast, and this is important because we have production facilities across the country, which gives us more flexibility to shift production, as we did in the previous crisis”, said Faraco. In addition, with a larger stock, Gerdau will be able to serve customers at the end of this year and at the beginning of 2022, if the situation worsens, he said. Gerdau has its own power generation at the Ouro Branco mill, in Minas Gerais, which is able to supply 60% to 70% of its energy demand.”
Sources: Valor/Portos e Navios (*Translated by Ia Niani)