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 14th 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:– 10th Greatest Place to Work (2007)– Social Responsibility Award (2006)– Efficient Energy Award (2006)– National Environmental Award (2001)– Clean Production Award (1999)