Ian Mundy Kayla Reddington Lauren Smith Laura Watts

Ian Mundy, Kayla Reddington, Lauren Smith, Laura Watts

Global and National Environment • • • Quality Focus Political Factors Economic Factors Social Factors Technological Factors

Global and National Environment • Quality focus: – Quality improvement and excellence. – Internationally recognized.

Global and National Environment • Political Factors: – International Rules and Regulations • Acquisition of Century Steel

Global and National Environment • Economic Factors: – Steel Industry – China – Chile’s key advantages – Main objectives: • • Increase SOL Eliminate shortages Stimulate secondary steel industries Domestic focus

Global and National Environment • Social Factors: – CSR Policy • Social Evaluations • Funded 592 social projects in 2002 • HR Management Practices – Educational visits • Commitment • Recruitment

Industry Analysis • • • . Gerdau AZA is one branch of The Gerdau Group A diversified company 24. 8 million metric tons of steel each year Ranked 14 th in the world Exports steel to all seven continents

Industry Analysis • Product Categories: – Agricultural products – Civil construction products – Industrial products – Specialty steels

Industry Analysis • Major Competitors: – Universal Stainless and Alloy Products • Manufactures specialty steel products for aerospace, petrochemical, and heavy equipment industries. – Nucor Corporation • Manufacture a variety of steel products primarily in the U. S. and Canada. It is North America’s largest recycler.

Industry Analysis – Arcelor Material • The world leader in steel production with 10% of the world’s steel output. It also has plants in 60 countries and a strong presence in the automobile, construction, and housing appliance markets. – Quanex Corporation • Based in Houston, Texas, it is a leading manufacturer of engineered materials for building and vehicular products.

Industry Analysis • Industry Challenges: – Pollution: air, water, soil • • Gerdau is always developing better technology Dust removal systems to filter particles and gases 97% of the plant’s water is reused Reduction of residue generation of electric furnaces

Industry Analysis • Opportunities: – Relatively perpetual demand – Abroad opportunities • Recognizable brand name

Industry Analysis • Gerdau 2007 – Sales Revenue: $34. 2 billion • 18. 5% growth – Net Profit: $4. 3 billion • 11. 9% growth • 60% of profit comes from abroad

Recycling • Steel is the most recycled material in the world • The average scrap recycling rate in Chile is still low • A majority of their raw materials come from: – Home appliances – Vehicles and vehicle parts – Industrial by-products – Steel cans

Recycling Process • Step 1: Recycled scrap metal is grinded • Step 2: Metal is then melted down to base components • Step 3: Poured into flat bars • Step 4: The bars are sent through the oven (uniform temp of 1200⁰C) • Step 5: Sent through a set of two perpendicular rollers. Either sent to be shaped into: type of bar shape, or compressed and elongated into wire shape.

Products Type • • Steel Rebar Angular Steel Bar Star Shaped Bar Round Bars • Wire Rod Application Concrete building Reinforcement of rocks Safes/metallic carpentry Formed into bolts, screws, and rivets • Electrical wire/nails • •

Materials Transport • Raw materials are shipped in by truck from various recycling companies • Finished product is shipped out by numerous distributors

Major Distributors • • Barraca de Fierro Andrade (Iquique, Chile) Barraca de Fierro Andrade (Africa) Comercial El Bosque (Iquique, Chile) Prodalam (Iquique, Chile) Sack (Iquique, Chile) Sodimac (Iquique, Chile) Steel Nort (Africa)

Safety Issues • Regulated by OHSAS 18001: – International Health and Safety Management System – Aspects cover: • • • Training Risk assessment Fire protection Hazardous material Etc.

Work Requirements • Engineers: – Professional Engineering Degree – Minimum of 3 years work experience with processes – Risk assessment management skills • Plant Operator – No degree required – Minimum 1 year experience with process – No special skills required

Achievements • Some awards: – 10 th Greatest Place to Work (2007) – Social Responsibility Award (2006) – Efficient Energy Award (2006) – National Environmental Award (2001) – Clean Production Award (1999)