Effective June 9, 2009

Gerdau Idles N.J. Mill,
Closes Rolling Mill

Gerdau Ameristeel Corp., Tampa, Fla., will suspend production at its Sayreville, N.J., steel mill and close a rolling mill in neighboring Perth Amboy. Gerdau is also entering into discussions with the United Steel Workers regarding the potential closure of the company's steel mill located in Sand Springs, Okla.

The lower demand from products as a result of the downturn in the economy was cited for the decision. The company says these actions are expected to occur gradually over the next several months, and that operations will restart at the Sayreville facility when business conditions warrant.

Gerdau says it will continue to offer its full range of products to its customers throughout North America and service to customers will be uninterrupted and will be provided by production from Gerdau Ameristeel's network of steel mills in the United States and Canada. The Sayreville facility will continue to carry a full range of products in inventory available for shipment or customer pickup until production resumes.

"This was a very difficult decision that came after careful analysis and review of the marketplace, our production capabilities, and the most cost effective alternatives to meet the current and future needs of our customers throughout North America during this unprecedented economic downturn,” says Mario Longhi, President and CEO of Gerdau Ameristeel. “These actions follow a series of steps the company has taken over the last nine months to reduce its costs. We understand the impact that these decisions will have on the lives of our employees and our communities, but unfortunately market conditions mandated that these actions be taken at this time."

Depending on the outcome of the Sand Springs discussions, the company expects to realize annualized pre-tax cash savings of approximately $35 million to $70 million as a result of these actions.