Gerdau Ends Steel Production at Divinópolis Plant
Company cites loss of competitiveness and surge in foreign imports
Gerdau has announced the end of steel production at its facility in Divinópolis, Minas Gerais. The company justified the move by citing a lack of cost-competitive iron ore and the pressure exerted by steel products arriving from abroad.
The closure is part of a strategy to optimize the company's assets in Brazil. The steelmaker intends to concentrate its operations in units with greater technological efficiency and long-term financial sustainability.
The decision directly impacts about 1,000 jobs, including both direct employees and contractors. The local government estimates that the plant accounts for approximately 15% of the municipality's ICMS tax revenue and will affect the surrounding network of small businesses.
Data from the third quarter of 2026 reveal that the Brazilian operation is facing a 26% drop in Ebitda. While domestic sales fell by 14.6%, exports of Brazilian steel recorded a 47.9% decline.
The company has initiated a support process for the affected professionals. The plan includes the possibility of transfers to other company units and the offer of technical training courses to assist with job market placement.
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