Gerdau (GGBR3, GGBR4) confirmed, in a statement dated November 6, 2026, that it has hibernated the blast furnaces and the steel shop at its Divinópolis (MG) plant, as well as related assets. The decision is in line with the strategy of optimizing industrial operations in Brazil, concentrating steel production in more competitive, efficient and technologically advanced assets, in order to ensure the long-term sustainability of the business.
The plant has an installed capacity of approximately 600,000 metric tons per year of crude steel, which represents about 4% of the company's installed capacity. Rolling continues on a reduced scale, using steel produced at other Gerdau plants. Customer service will be maintained by the other plants, which continue operating normally, with no impact on delivery times and supply conditions.
The statement responds to an inquiry from the CVM (Brazilian Securities and Exchange Commission) about a news report published by Valor Econômico on November 3, 2026. Gerdau considers that the decision is not a material fact, since the plant represents about 4% of total capacity and customers will continue to be served by the other plants.
For the affected employees, the company is considering transferring some of them to other plants and offering technical training courses and workshops to support job placement. Gerdau said it will keep the market informed of any relevant developments.
