Brazilian steelmaker Gerdau SA entered an agreement to form a joint venture with Putney Capital Management in Colombia.

Gerdau said in a March 29 filing that it will sell 50% of its stake in the Gerdau Diaco mill to Putney Capital.

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

The new venture is valued at US$165 million and has an annual output capacity of 674,000 tonnes of long steel.