WiredInUSA March 2016

INDEX

The Gerdau-Summit venture is expected to begin manufacturing in 2017. Photograph courtesy of Forgingmagazine.com

Brazilian venture

A joint venture between Sumitomo Corporation and Japan Steel Works Ltd with Gerdau SA is to manufacture and market forgings for wind power projects in Brazil. The Gerdau-Summit venture is expected to begin manufacturing in 2017. The impetus for the venture is the Brazilian government’s policy to increase the nation’s percentage of total electric power generated by wind energy systems to 11 percent by 2024 (from six percent in 2015.) This is intended to address the anticipated demand for electricity in the country. To achieve that goal, the Brazilian government is offering to subsidize new wind power generation projects, and also is promoting domestic manufacturing of the related systems and components. The Gerdau-Summit partners stated that their project is consistent with the country’s energy policy.

Gerdau is Brazil’s largest manufacturer of steel long products, with capabilities that include hydraulic forging for bars, crankshafts, and other custom parts. Sumitomo is the holding company that includes Sumitomo Heavy Industries, which among many other activities is a designer and builder of mechanical forging presses. The larger portfolio includes about 900 companies worldwide in manufacturing, construction, electronics, and other major business sectors. Japan Steel Works is a manufacturer of large dimension castings and forgings for industrial machinery, as well as power generation systems, and is recognized as one of the few manufacturers in the world capable of forging nuclear reactor vessel components.

wiredInUSA - March 2016

13