According to local sources, Brazil's largest steelmaker Gerdau announced that it has canceled its USD 600 million investment plan in Mexico following the 25% steel and aluminum import tariffs imposed by US President Donald Trump. The investment, announced in mid-2024, was to build a new steel plant with an annual production capacity of 600,000 tons.
“There is great uncertainty about the future of automotive close production in Mexico,” Gerdau President Gustavo Werneck stated at the announcement of the first quarter results for 2025, adding that a major production restructuring is expected in the region. According to Werneck, Mexico's position as a safe center for auto parts production for the US is in jeopardy.
The company announced in February that it was reviewing its investment plans. Gerdau, which realizes about half of its sales in the US and Mexican markets, had a close production strategy for these two countries. “The uncertainty about how the global automotive supply chain will shape up after the tariffs is affecting our decision,” stated CEO Werneck.
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