1. Ian Mundy, Kayla Reddington, Lauren Smith, Laura Watts

2. Global and National Environment Quality Focus Political Factors Economic Factors Social Factors Technological Factors

3. Global and National Environment Quality focus: – Quality improvement and excellence. – Internationally recognized.

4. Global and National Environment Political Factors: – International Rules and Regulations Acquisition of Century Steel

5. Global and National Environment Economic Factors: – Steel Industry – China – Chile’s key advantages – Main objectives: Increase SOL Eliminate shortages Stimulate secondary steel industries Domestic focus

6. Global and National Environment Social Factors: – CSR Policy Social Evaluations Funded 592 social projects in 2002 HR Management Practices – Educational visits Commitment Recruitment

7. Industry Analysis Gerdau AZA is one branch of The Gerdau Group A diversified company 24. 8 million metric tons of steel each year Ranked 14 th in the world Exports steel to all seven continents.

8. Industry Analysis Product Categories: – Agricultural products – Civil construction products – Industrial products – Specialty steels

9. Industry Analysis Major Competitors: – Universal Stainless and Alloy Products Manufactures specialty steel products for aerospace, petrochemical, and heavy equipment industries. – Nucor Corporation Manufacture a variety of steel products primarily in the U.S. and Canada. It is North America’s largest recycler.

10. Industry Analysis – Arcelor Material The world leader in steel production with 10% of the world’s steel output. It also has plants in 60 countries and a strong presence in the automobile, construction, and housing appliance markets. – Quanex Corporation Based in Houston, Texas, it is a leading manufacturer of engineered materials for building and vehicular products.

11. Industry Analysis Industry Challenges: – Pollution: air, water, soil Gerdau is always developing better technology Dust removal systems to filter particles and gases 97% of the plant’s water is reused Reduction of residue generation of electric furnaces

12. Industry Analysis Opportunities: – Relatively perpetual demand – Abroad opportunities Recognizable brand name

13. Industry Analysis Gerdau 2007 – Sales Revenue: $34.2 billion 18.5% growth – Net Profit: $4.3 billion 11.9% growth 60% of profit comes from abroad

14. Recycling Steel is the most recycled material in the world The average scrap recycling rate in Chile is still low A majority of their raw materials come from: – Home appliances – Vehicles and vehicle parts – Industrial by-products – Steel cans

15. Recycling Process Step 1: Recycled scrap metal is grinded Step 2: Metal is then melted down to base components Step 3: Poured into flat bars Step 4: The bars are sent through the oven (uniform temp of 1200⁰C) Step 5: Sent through a set of two perpendicular rollers. Either sent to be shaped into: type of bar shape, or compressed and elongated into wire shape.

16. Products Type Steel Rebar Angular Steel Bar Star Shaped Bar Round Bars Wire Rod Application Concrete building Reinforcement of rocks Safes/metallic carpentry Formed into bolts, screws, and rivets Electrical wire/nails

17. Materials Transport Raw materials are shipped in by truck from various recycling companies Finished product is shipped out by numerous distributors

18. Major Distributors Barraca de Fierro Andrade (Iquique, Chile) Barraca de Fierro Andrade (Africa) Comercial El Bosque (Iquique, Chile) Prodalam (Iquique, Chile) Sack (Iquique, Chile) Sodimac (Iquique, Chile) Steel Nort (Africa)

19. Safety Issues Regulated by OHSAS 18001: – International Health and Safety Management System – Aspects cover: Training Risk assessment Fire protection Hazardous material Etc.

20. Work Requirements Engineers: – Professional Engineering Degree – Minimum of 3 years work experience with processes – Risk assessment management skills Plant Operator – No degree required – Minimum 1 year experience with process – No special skills required

21. Achievements Some awards: – 10 th Greatest Place to Work (2007) – Social Responsibility Award (2006) – Efficient Energy Award (2006) – National Environmental Award (2001) – Clean Production Award (1999)