\n\tSumitomo Corp., Japan, and the Japan Steel Works have formed a joint venture with Gerdau Steel, Brazil, to manufacture forged steel products for wind power generation. Gerdau is the largest long steel manufacturer in Brazil. Production of these forged parts is expected to begin in 2017.<\/p>\n
\n\tThe joint venture (tentative name “Gerdau Summit”), in addition to the existing business of Gerdau, plans to expand the business into the production and sale of wind power generation forged products.<\/span><\/p>\n \n\tCurrently, the Brazilian government’s policy is to almost double the ratio of wind power generation from a national total power supply of 6% in 2015 to 11% in 2024, in order to meet future electricity demand. To achieve this goal, the government provides support for wind power generation projects and encourages domestic manufacturing of wind power generation-related parts.<\/span><\/p>\n \n\t“We’re working to transform Gerdau into a more efficient and profitable company, given the current and future challenges of the global steel industry,” said Gerdau CEO Andre B. Gerdau Johannpeter. “We’re seeking to join forces with partners who have recognized experience in their industries in order to create new business opportunities. With Sumitomo Corporation and JSW, we will develop higher-value products for our clients, which will enable them to generate higher profit margins.”<\/p>\n