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| Gerdau Corsa |
Gerdau Corsa is expanding Gerdau scrap processing capacity by opening a major facility in Tlaquepaque, Jalisco. The steelmaker designed this 25,000-square-meter facility to handle growing regional demand for recycled feedstock. Consequently, the plant can collect and process over 60,000 tonnes of ferrous scrap each year. This strategic investment accelerates Gerdau’s transition toward sustainable long steel manufacturing across Latin America.
Boosting Local Recycling Chains and Environmental Compliance
The new Jalisco facility strengthens local scrap suppliers, collectors, and logistics networks within the regional recycling economy. Gerdau Corsa currently processes over one million tonnes of ferrous scrap annually for its steelmaking operations. In contrast to uncertified competitors, the company holds the prestigious Mexican Clean Industry Certification. Therefore, the expansion reinforces strict environmental compliance while securing reliable secondary raw materials.
Cost Reduction Drives Strong First Quarter Profitability
Efficiency gains and lower operational costs propelled Gerdau's net profit up 32 percent in early 2026. Net revenue fell slightly by 3.8 percent year-on-year to 3.4 billion dollars during the first quarter. However, production costs dropped 6.5 percent to 2.9 billion dollars during the same period. As a result, gross profit climbed 17.8 percent while Gerdau scrap processing capacity optimization supported operating profit growth.
ScrapInsight Commentary
Gerdau’s expansion in Jalisco underlines the growing strategic reliance on regional scrap processing networks across North America. Lower production costs and higher gross margins demonstrate how scrap-intensive EAF producers maintain profitability during revenue dips. We expect regional scrap tightness in Mexico to increase as major mills compete aggressively for prime ferrous grades.
