Gerdau Colombia JV spells out scrap requirements

Brazil-based steelmaker Gerdau says it anticipates melting some 350,000 tons of ferrous scrap at its Gerdau Diaco facilities in Colombia. Gerdau is a joint venture (JV) partner with Dominican Republic-based Putney Capital Management in Gerdau Diaco.

In an interview published in late March on Portafolio.co, Gerdau Diaco Executive President Jefferson Marko says the steelmaking JV considers itself to be playing an important role in the circular economy aspirations of Colombia.

Marko also expresses optimism for the Colombian economy in 2021, telling Portafolio, “We see a resilient economy that wants to recover pre-pandemic production levels.”

If that is the case, Marko estimates Gerdau Diaco will melt “around 350,000 tons” of ferrous scrap to meet anticipated steel demand from the construction and infrastructure sectors. He also refers to Gerdau Diaco as the largest volume recycler in the nation.

The maker of steel rebar, wire and other forms of steel also operates seven scrap processing facilities, and according to its website offers vehicle and industrial dismantling services “nationwide.”

The website lists numerous ferrous scrap grades purchased by Gerdau Diaco. Marko tells the Bogotá, Colombia-based publication that obsolete grades comprise the largest portion of its ferrous feedstock, which he describes as “captured by trade recyclers.”

Gerdau Diaco has supported initiatives to organize the informal collector network in Colombia, according to Marko. “We currently have an agreement with the Ministry of the Environment and Sustainable Development with which, since 2019, we seek the formalization and strengthening of 16 associations of trade recyclers in Bogotá and Medellín,” he tells Portafolio. “This public-private synergy has allowed us to improve the quality of recovered ferrous scrap, which is an essential input for steel production.”

Adds the executive, “So far, more than 2,500 recyclers have benefited through technical training and the incorporation of good practices, which has allowed them to improve their processes in the scrap management chain and, at the same time, sell cleaner material at lower prices. more competitive.”

The full interview with Marko, in Spanish, can be found on this web page.