Reuters quoted Mr Andre Gerdau Johannpeter CEO of Gerdau as saying that it will slowly resume production and investments as the market for steel recovers gradually. Mr Johannpeter said that the USD 8.3 billion acquisition frenzy over which he has presided since taking the helm of the Porto Alegre in 2007 was the right decision.
He added that "It was a question of positioning yourself strategically, since everyone in the industry was doing the same." Mr Johannpeter said that he is concerned over excess optimism by bankers and investors about the pace of the global economic recovery.
He added that "We see the stock markets with all this level of euphoria. Everyone has gone through such a rough ride that they are looking for good news. And we need the good news to keep coming."
Gerdau posted its first quarterly loss in a decade in the second quarter after writing down the value of assets acquired during the past years. It has been grappling with declining activity as a recession in key markets such as the United States and some European countries has curbed demand.