Brazilian steel producer Gerdau announced that it will temporarily lay off 50 workers of its São José dos Campos plant for five months, effective from April 1.
According to the company, the decision ultimately derives from “the strong competition from imported steel products, chiefly from China.”
The São José dos Campos plant has a workforce of 380 employees, producing chiefly long steel products.
The 50 workers will maintain the stability of employment for an extra three months after the five-month lay-off period,
According to analysts, the move is part of a Gerdau strategy to emphasize, next to the government authorities, the importance of approving a 25 percent import tax for steel products, against today’s average of 12 percent, as an alternative to reduce steel imports at alleged dumped prices, chiefly from China.