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Ian Mundy, Kayla Reddington, Lauren Smith, Laura Watts. Global and National Environment. Quality Focus Political Factors Economic Factors Social Factors Technological Factors. Global and National Environment. Quality focus: Quality improvement and excellence.
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Global and National Environment • Quality Focus • Political Factors • Economic Factors • Social Factors • Technological Factors
Global and National Environment • Quality focus: • Quality improvement and excellence. • Internationally recognized.
Global and National Environment • Political Factors: • International Rules and Regulations • Acquisition of Century Steel
Global and National Environment • Economic Factors: • Steel Industry • China • Chile’s key advantages • Main objectives: • Increase SOL • Eliminate shortages • Stimulate secondary steel industries • Domestic focus
Global and National Environment • Social Factors: • CSR Policy • Social Evaluations • Funded 592 social projects in 2002 • HR Management Practices • Educational visits • Commitment • Recruitment
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 .
Industry Analysis • Product Categories: • Agricultural products • Civil construction products • Industrial products • Specialty steels
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 America’s largest recycler.
Industry Analysis • Arcelor Material • The world leader in steel production with 10% of the world’s 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.
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 plant’s water is reused • Reduction of residue generation of electric furnaces
Industry Analysis • Opportunities: • Relatively perpetual demand • Abroad opportunities • Recognizable brand name
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
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
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 1200⁰C) • 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.
Products Type Application Concrete building Reinforcement of rocks Safes/metallic carpentry Formed into bolts, screws, and rivets Electrical wire/nails • Steel Rebar • Angular Steel Bar • Star Shaped Bar • Round Bars • Wire Rod
Materials Transport • Raw materials are shipped in by truck from various recycling companies • Finished product is shipped out by numerous distributors
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)
Safety Issues • Regulated by OHSAS 18001: • International Health and Safety Management System • Aspects cover: • Training • Risk assessment • Fire protection • Hazardous material • Etc.
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
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)