Ian Mundy, Kayla Reddington, Lauren Smith, Laura Watts

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• Ian Mundy, Kayla Reddington, Lauren Smith, Laura
  Watts

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Global and National Environment

• Quality Focus
• Political Factors
• Economic Factors
• Social Factors
• Technological Factors

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Global and National Environment

• Quality focus
• Quality improvement and excellence.
• Internationally recognized.

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Global and National Environment

• Political Factors
• International Rules and Regulations
• Acquisition of Century Steel

5
Global and National Environment

• Economic Factors
• Steel Industry
• China
• Chiles key advantages
• Main objectives
• Increase SOL
• Eliminate shortages
• Stimulate secondary steel industries
• Domestic focus

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Global and National Environment

• Social Factors
• CSR Policy
• Social Evaluations
• Funded 592 social projects in 2002
• HR Management Practices
• Educational visits
• Commitment
• Recruitment

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Industry Analysis

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

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Industry Analysis

• Product Categories
• Agricultural products
• Civil construction products
• Industrial products
• Specialty steels

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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
  Americas largest recycler.

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Industry Analysis

• Arcelor Material
• The world leader in steel production with 10 of
  the worlds 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.

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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 plants water is reused
• Reduction of residue generation of electric
  furnaces

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Industry Analysis

• Opportunities
• Relatively perpetual demand
• Abroad opportunities
• Recognizable brand name

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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

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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

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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 1200C)
• 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.

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Products

• Type

• Application

• Steel Rebar
• Angular Steel Bar
• Star Shaped Bar
• Round Bars
• Wire Rod

• Concrete building
• Reinforcement of rocks
• Safes/metallic carpentry
• Formed into bolts, screws, and rivets
• Electrical wire/nails

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Materials Transport

• Raw materials are shipped in by truck from
  various recycling companies
• Finished product is shipped out by numerous
  distributors

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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)

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Safety Issues

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

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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

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Achievements

• Some awards
• 10th Greatest Place to Work (2007)
• Social Responsibility Award (2006)
• Efficient Energy Award (2006)
• National Environmental Award (2001)
• Clean Production Award (1999)