Business Profiles

GERDAU: Spinning Scrap into Green Steel

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MANITOBA’S scrap metal is being used to create premium steel for buildings and equipment around the world, and it’s being done in one of the greenest steel mills in the Americas.

Gerdau’s mill in Selkirk produces steel with some of the lowest embodied carbon levels in the world.

“Our sustainable business model involves transforming recycled scrap metal into new steel products. Producing steel from scrap metal reduces the amount of material deposited in landfills. The use of steel scrap as a raw material reduces energy consumption in our production process and minimizes emissions of CO2,” says Paulo Leal, Gerdau Manitoba’s vice president and general manager.

“Recycling scrap is also great for our economy, as it generates jobs for thousands of people through an extensive chain of scrap collection and processing operations.”

The mill’s environmental sustainability also comes courtesy of electric arc furnace (EAF) steelmaking technology.

An EAF is a type of melting furnace that uses electrical energy to efficiently melt the main raw material of scrap metal, thus reducing carbon emissions.

One of the largest steel mills in western Canada, Gerdau Manitoba produces over 300,000 tons of steel each year. The steel products are part of extensive domestic and global supply chain networks, used by companies and countries around the world in transport, agri-business and mining equipment.

About 50 per cent of North America’s truck trailers’ super-light beams and related undercarriage steel and a significant per centage of forklift assemblies/tines originate from Manitoba. The mill produces steel for the grader blades on heavy equipment that are used by fellow Selkirk-based companies Black Cat Blades and TC Industries, as well as others across the continent.

Gerdau and its joint venture Monteferro America, also supply elevator guide rails and related components to the top producers in the world.

“The Selkirk-based ecosystem is a major player in the elevator industry, serving the top four producers in the world and about two dozen other companies, in collaboration with a partner in Italy,” says Leal. “Manitoba-made components can be found in the elevator systems in six of the 10 tallest buildings in the world today.”

Gerdau Manitoba employs over 500 full-time employees. In addition, there are over 300 employees employed up and downstream in other Gerdau businesses and joint ventures, including Bradley Steel Processors in Winnipeg and Monteferro America locations in Bird’s Hill and Steinbach.

“Selkirk and Manitoba communities are partners and a key component of the success of Gerdau Manitoba for more than a century,” says Stan Yee, Gerdau Manitoba’s human resources manager. The steel production in Selkirk and its associated industries has created a valuable economic base. According to Selkirk mayor Larry Johannson, the city has greatly benefited as Gerdau plays a major role in the local economy and impacts over 20 businesses. “Gerdau Manitoba directly supports Selkirk-based metal fabricating and manufacturing firms. Collectively they represent an innovative value-chain with some of the most sophisticated and efficient steel inventory management practices in North America,” says Johannson.

“For over a century, Selkirk and other Manitoba communities have partnered with and been a key part of the success of Gerdau Manitoba. A considerable portion of the community works directly or indirectly with the plant.” The community connections extend beyond the traditional supply chain as Gerdau has supported multiple programs and initiatives locally, including sponsorship of meal programs and support of the high school welding program. The steel mill also assists the Selkirk Fire Department, employing area firefighters while allowing them to leave work to respond to calls, providing key tools for their specialty crews and allowing firefighters to train on-site at Gerdau for more realistic scenarios.

One man’s trash is another man’s treasure. And for Selkirk, the economic treasures abound thanks to some scrap metal.

1-800-637-8144

GLNInfo@Gerdau.com

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