Steel Business Briefing

Gerdau Ameristeel would like to be a bigger player in flats

Wednesday, 14 October 2009

Gerdau Ameristeel, a dominant player in the US longs market, would like
to be a bigger player in the sheet market as well. Ameristeel owns half
of Gallatin Steel, the Kentucky sheet-making minimill with about 1.5m short
tons/year of capacity. ArcelorMittal owns the other half.

"We have a great relationship with ArcelorMittal," said Ameristeel CEO Mario
Longhi, adding that the partners occasionally discuss the acquisition of ArcelorMittal's
stake. "But how do you value this - especially now?" In an interview with Steel Business
Briefing at the World Steel Association meeting in Beijing, Longhi said it's probable that a
significant portion of currently idled US blast furnaces won't come back online, raising the prospects
for more nimble electric furnace sheet mills like Gallatin.

"One day flats could become a bigger part of our portfolio," Longhi said.
"It can be a natural path for us going forward."