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Sumitomo forges forging project with Brazil’s Gerdau for turbine components

By Paul Dvorak | February 1, 2016

Sumitomo Corporation, together with The Japan Steel Works (JSW), announced their partnership with Gerdau to manufacture and sell wind power generation forged products under the joint-venture. Gerdau is the largest long steel manufacturer in Brazil. Production of these forged parts is expected to begin in 2017.

Sumitomo forges forging deal withThe joint-venture (tentative name “Gerdau Summit”), in addition to the existing business of Gerdau, plans to expand the business into the production and sale of wind power generation forged products. Currently, the Brazilian government’s policy is to almost double the ratio of wind power generation from a national total power supply of 6% in 2015 to 11% in 2024, in order to meet future electricity demand. To achieve this goal, the government provides support for wind power generation projects and encourages domestic manufacturing of wind power generation-related parts. This project is consistent with the country’s policy and its facility will become the center of wind-forged products within Mercosur, and is expected to create 100 new jobs.

JSW has long been leading the world’s forging industry with its manufacturing technologies, mainly in the energy field such as power generation. Sumitomo also has significant experience and knowledge within the renewable energy and wind-related business, which has been cultivated through many infrastructure projects and related parts sales respectively. By bringing the strengths of these two companies together with Gerdau’s strong production base,”Gerdau Summit” will focus on the production and sale of forged products for wind power generation in the Latin American market with a focus on Brazil.  JSW has plenty of experiences to transfer its forging and casting techniques to foreign countries. Based on such experiences, JSW launches its overseas joint venture project for the first time in the forging and casting field.

Forgings and castings are formed and fabricated material required for a wide range of industries, not only limited to wind power generation. It is expected that demand for these products will increase in response to Brazil’s economic growth. Sumitomo Corporation and JSW will commit themselves to the growth of this joint venture and thereby contribute to the development of the region’s industry and economic growth.

Sumitomo Corporation
sumitomocorp.co.jp/en/

Japan Steel Works
jsw.co.jp/en/

Gerdau
gerdau.com/northamerica/en


Filed Under: Uncategorized
Tagged With: gerdau, japansteelworks, sumitomo
 

About The Author

Paul Dvorak

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