Tariffs drive companies to expand manufacturing in U.S., Gerdau says

Gustavo Werneck, chief executive of Gerdau, said the U.S. administration’s tariff policy may be viewed as an unexpected measure, but it also reflects a long-term vision and confidence in the revival of American industry.

According to Werneck, Gerdau does not base its investment decisions on short-term volatility and continues to invest because it believes in the long-term recovery of U.S. manufacturing.

“There has been an additional incentive for Brazilian companies to establish manufacturing operations here in the United States,” Werneck said during the third edition of the Summit Valor Brazil-USA on Wednesday in New York.

The executive, who took part in a panel on trade and investment relations between Brazil and the United States, said the cost of key industrial inputs such as energy and natural gas in the U.S. is unmatched, making it impossible to offset the price gap between the two countries solely through management efficiency.

“In Brazil, we pay around $16 per cubic meter of natural gas. Here, despite all the volatility, we are still paying around $4,” he said.

Gerdau operates 13 of its 29 steel production units in North America, with facilities spread across the United States and Canada.

According to Werneck, the reindustrialization of the U.S. is already visible through customers building new factories in the country.

“We are currently supplying a significant amount of steel to new semiconductor plants being established here,” he added.

Gustavo Werneck — Foto: Vanessa Carvalho/Valor



Source link