Brazilian steel producer Gerdau and Brazil-based semi-trailer producer Randon have launched a joint venture to enter a new heavy vehicle rental business.
The two companies have formed a 50/50 partnership, with investments estimated at $50 million, where Gerdau is represented by Gerdau Next, the new business division of the group, while Randon will be represented by a similar unit, Randon Services and Participations.
According to Gerdau, the initial intention is to provide truck and semi-trailer rental services, to deliver solutions that meet the needs of cargo carriers or shippers. In a second stage, the new company could participate in the rental of equipment for the civil construction sector and for utilization in agriculture.
The focus of the new company will be transportation companies and independent truck drivers that have fewer capital resources to acquire new equipment, as Brazil has an estimated 1.2 million trucks aged 15 years or older in a fleet of 2.5 million units.
The JV is subject to the usual approval of antitrust authorities.