Gerdau Sells Texas Wire Rod Mill to Optimus Steel for $92.5 Million
Brazil-based Gerdau S.A. has agreed to sell its Texas wire rod mill and two downstream facilities to Optimus Steel LLC in a deal valued at $92.5 million. This Gerdau wire rod mill sale marks a strategic shift in the company’s North American operations.
Gerdau Wire Rod Mill Sale Includes Texas Facilities
To begin with, Gerdau (https://www.gerdau.com) will transfer ownership of its Beaumont wire rod mill, which has a melt shop capacity of 700,000 tons. The facility produces both wire rod and coiled rebar, serving a range of industrial applications.
In addition, the agreement includes two downstream operations: Beaumont Wire Products, a wire mesh manufacturing facility, and Carrollton Wire Products, which supplies industrial wire products across the southern United States.
Strategic Exit from Wire Rod Segment
Furthermore, this transaction follows Gerdau’s earlier agreement to sell four rebar mills and multiple downstream facilities to Commercial Metals Company (https://www.cmc.com) for $600 million.
As a result, once both deals close, Gerdau will fully exit the wire rod production segment in North America.
Focus on Value-Added Steel Products
Gerdau plans to shift its strategy toward higher-value steel products. CEO Gustavo Werneck emphasized the company’s commitment to focusing on more advanced and profitable offerings.
Despite the divestment, Gerdau will maintain a strong regional presence. The company will continue operating 18 facilities in North America, including 15 in the U.S. and three in Canada, producing merchant steel, structural steel, and rebar.
Industry Impact and Market Position
Ultimately, this move reflects broader changes in the steel manufacturing industry, as companies prioritize efficiency and value-added production.
The acquisition strengthens Optimus Steel’s position in the U.S. wire rod market, while Gerdau refines its long-term growth strategy.
