Business · Companies · 5 hrs ago
Gerdau to end steel production at its Divinópolis plant
Gerdau will end steel production at its plant in Divinópolis, a city in the Brazilian state of Minas Gerais.
The company said iron ore costs, imported steel and difficult export conditions made the operation less competitive.
It plans to concentrate production at other facilities it considers more efficient and competitive.
About 1,000 direct and contract workers may be affected, according to the city government.
Gerdau plans to move some workers to other units and offer courses to help others find jobs.
The closure could also affect local businesses and city revenue, since the plant is an important part of the local economy.
Federal deputy Nikolas Ferreira blamed President Luiz Inácio Lula da Silva’s government, while Gerdau cited operating and trade pressures as its reasons.
Gerdau announced on 3 November that it would end steel production at its unit in Divinópolis, Minas Gerais.
The company cited difficulty obtaining iron ore at competitive prices, imported-steel competition and unfavorable export conditions.
Gerdau said the decision is part of a plan to concentrate production in more competitive and efficient units.
The city government estimates that about 1,000 direct and outsourced workers are affected.
The mayor said the municipality would support affected people, while federal deputy Nikolas Ferreira linked the decision to President Luiz Inácio Lula da Silva’s government.
- Who
- Gerdau, the Brazilian steelmaker, announced the decision. About 1,000 direct and outsourced workers are affected.
- What
- Steel production will end at Gerdau’s Divinópolis unit.
- When
- The announcement was made on 3 November 2026.
- Where
- Divinópolis, in Minas Gerais, Brazil.
- Why
- Gerdau cited the lack of competitively priced iron ore, imported-steel competition and unfavorable export conditions.
Nikolas Ferreira
Gerdau
Responsibility
Nikolas Ferreira
Ferreira linked the end of production to the Lula government.
Gerdau
Gerdau cited operating and market pressures, including iron ore costs, imported-steel competition and export conditions.
Gerdau reported that it was adjusting its Brazilian assets to improve profitability and productivity.
Mayor Janete Aparecida said a temporary shutdown was among the options being considered to preserve jobs and allow a possible future restart.
Gerdau announced it would end steel production at its Divinópolis unit.
Ferreira linked the decision to the Lula government, and the mayor said the municipality was affected.
- Affected workers
- About 1,000 direct and outsourced employees
- Share of municipal industrial workforce
- 7.4%
- Estimated share of municipal ICMS revenue represented by the unit
- About 15%
- Businesses near the unit
- About 2,000; 93% are microenterprises
- Gerdau adjusted net profit
- R$1.5 billion in the third quarter of 2026
3 sources
What people are saying
Either we stop Lula, or Lula will stop Brazil.
Divinópolis has a diversified economy, but that does not lessen the gravity of this moment. We will intensify talks with the productive sector and do everything within the Municipality’s power, without making promises that do not depend on us.