Mr Juan Manuel Lesmes head of Colombian steel association Fedemetal told BNamericas that Colombia's steel sector is in a very strong position with healthy production figures and a good market.

He said that capacity expansion plans are ongoing. He added that "For example, Diaco, with its plant in Tocancipá, or Acesco, which opened the galvanizing line in Barranquilla and PazdelRío's environmental projects, which are almost ready."

Mr Lesmes said that Diaco is owned by Brazilian steelmaker Gerdau and compatriot Votorantim Metais owns PazdelRío. At the same time, foreign steelmakers have expressed interest in local companies, although there is no information on a concrete offer.

Mr Jaime Charles CEO of Chilean iron ore and steel group CAP recently said that the company is looking to expand its finished steel products business to Colombia. He added that "Our objective, if the conditions are right, is to arrive in the short term to Colombia, a country with potential economic growth similar to Peru."

The demand for long steel products in Colombia rose 8.1% to 1.5 million tonnes in 2010 from 1.3 million tonnes in the prior year, while imports fell by 3.1%. Consumption of flat steel products was 1.1 million tonnes in 2010, up from 711,000 tonnes in 2009.

Fedemetal is part of national industry association ANDI.

(Sourced from www.bnamericas.com)