Gerdau SA, the largest steelmaker in the Americas, has agreed to create a long steel joint venture in Colombia with Putney Capital Management amid efforts to cut debt and boost returns.

Under terms of the venture, which were unveiled in a Wednesday securities filing, Porto Alegre, Brazil-based Gerdau will sell half of its stake in a Colombian mill, Gerdau Diaco, to Putney. The venture is valued at $165 million and has annual output capacity of 674,000 tonnes, the filing said.

Putney, an asset management firm, is also Gerdau's partner in the Dominican Republic.

Source:reuters.com