The steel industry is undergoing one of the most transformative periods in its modern history. Global demand for decarbonised steel, fluctuating commodity prices, and stricter climate regulations are redefining business strategies for companies like Gerdau. Amidst these changes, Gerdau has announced a strategic leadership change that places experience and legacy at the forefront.
Brazil’s Gerdau S.A., with over 120 years of industrial history, stands as a beacon in Latin America's steel sector. Known for its extensive use of electric arc furnaces and recycling scrap metal, Gerdau has long walked the path of sustainability. Now, as international pressure mounts to further reduce industrial CO₂ emissions, leadership capable of steering innovation and corporate stewardship becomes more critical.
“In these challenging times, companies need not only innovation, but institutional memory. Gerdau is placing its bet on legacy leadership,” remarked Ana Cláudia Moraes, an ESG consultant at Deloitte Brazil.
Who’s Involved?
At the heart of this development are two figures from the Gerdau family tree. André Gerdau Johannpeter, born in 1963, led the company as CEO for a decade between 2007 and 2017. Under his stewardship, Gerdau expanded its North American operations and invested in EAFs, increasing its sustainability footprint and global presence.
Now, André takes over as Chairman of the Board, replacing Guilherme Chagas Gerdau Johannpeter, who transitions to the role of Vice Chairman. This seamless shuffle of leadership roles reflects the company’s tight-knit governance approach, rooted in familial trust and business continuity.
“This is not a goodbye, but a baton pass. I remain committed to Gerdau's mission from my new position,” said Guilherme in a statement shared on the company’s official website.
“I return not for nostalgia, but for responsibility,” said André Gerdau Johannpeter at a press conference in Porto Alegre.
“I know the steel we forge isn’t only physical, but symbolic, it builds economies, bridges communities, and now, must protect the planet too.”
What’s at Stake?
With a workforce of over 30,000 people and operations in nine countries, Gerdau’s strategic choices influence not only markets but also socio-environmental narratives. The steel sector contributes nearly 8% of global CO₂ emissions, and companies are under intense scrutiny from regulators, investors, and environmental watchdogs.
Gerdau has pledged to reduce CO₂ emissions per metric ton of steel by 30% by 2030, a goal aligned with the Science Based Targets initiative (SBTi). The leadership shift comes at a pivotal juncture, as the company balances profitability, performance, and planetary accountability.
“What Gerdau decides over the next five years could set the tone for Latin America’s steel decarbonisation,” said Elena Vargas, a senior analyst at Wood Mackenzie.
“André understands the delicate interplay between tradition and transformation.”
Current Development or Announcement
On April 15, 2025, Gerdau made the official announcement that André Gerdau Johannpeter has assumed the Chairmanship of the Board of Directors. The news was shared via press release and further elaborated during a virtual town hall with employees and shareholders.
In his inaugural remarks, André laid out three pillars that will guide his leadership:
1. Sustainable Growth – Increasing production while decreasing environmental impact
2. Digital Transformation – Adopting AI, data analytics & smart manufacturing tools
3. Global Integration – Expanding partnerships and improving market agility
“The steel of the future must be lighter on the earth and stronger in purpose,” André said.
“Our board will act with moral clarity and industrial boldness.”
He also paid homage to his cousin Guilherme for steering Gerdau through the COVID-19 era and for stabilising operations during geopolitical turbulence in global supply chains.
Reaction from Public or Experts
The market’s response was swift. Gerdau’s share price on Brazil’s B3 exchange climbed by 2.1% the day following the announcement, reflecting renewed investor confidence. Analysts credit the reaction to André’s proven track record and strategic vision.
“André has institutional trust and market credibility. His tenure as CEO was marked by intelligent acquisitions and robust capital discipline,” said João Lima, metals portfolio manager at Bradesco Asset Management.
Employee reaction was also broadly supportive. At several Gerdau facilities in São Paulo and Minas Gerais, employee bulletin boards displayed welcome-back posters and messages.
“He knows the shop floor and the boardroom. That dual insight is rare and invaluable,” said Helena Rocha, a union representative from the Ouro Branco unit.
NGOs have also acknowledged the shift with cautious optimism. Environmental think tank Instituto Clima e Sociedade issued a statement urging André to prioritise green steel innovation and transparent ESG reporting.
Comparison with Past Events or Global Trends
Family succession in Brazilian corporate giants isn’t new, but Gerdau’s structure, where chairmanships and CEO roles rotate within family branches, is uniquely stable. This governance model has allowed continuity in crisis and clear succession planning.
Globally, companies like Tata Steel and Nippon Steel have experienced similar leadership transitions aimed at addressing decarbonisation goals. The return of seasoned leadership is increasingly common as industries face existential transformation.
“In volatile times, boards often revert to experienced insiders. It’s a global pattern,” noted Simone Eldar, a corporate governance researcher at INSEAD.
“André’s return is both a return to roots and a forward pivot.”
Future Implications & What to Watch For
Observers expect that under André’s chairmanship, Gerdau will focus on:
• Scaling EAF capacities to replace traditional blast furnaces
• Piloting green hydrogen (H₂) technology in its Brazilian plants
• Launching “green steel” product lines for infrastructure and automotive sectors
• Forming strategic alliances with renewable energy providers
Additionally, Gerdau’s innovation centre in São José dos Campos is expected to play a central role in decarbonisation R&D, potentially attracting government and foreign funding.
“We are entering the steel industry’s space race,” André said.
“It’s not about who makes more steel, but who makes better, cleaner steel for a sustainable future.”
Key Takeaways:
• André Gerdau Johannpeter has taken over as Chairman of Gerdau, returning after a decade
• Guilherme Chagas Gerdau Johannpeter steps down as Chairman to serve as Vice Chairman
• Gerdau targets a 30% cut in CO₂ emissions per metric ton of steel by 2030
• Company eyes green hydrogen, recycled scrap, and digital factories as core strategies
• Gerdau shares rose 2.1% following the leadership change
• Environmentalists, unions, and analysts cautiously optimistic about André’s return
