According to Mr Edgar Jiménez an analyst at brokerage Stanford Bolsa y Banca, Colombia will be able to produce and supply its own steel and be able to export large volumes of surplus in the short term.

Mr Jiménez told BNamericas that the forecast is based on several factors, primarily the entry of Brazilian companies Votorantim and Grupo Gerdau into controlling shareholder roles at Colombian steelmakers Acerías Paz del Río and Diaco, respectively.

He added that "Things are going well and I believe that in the very near future one or two years max the steel sector will be a major player in the country's exports.”

The analyst said that Colombia has all of the resources necessary for vigorous steel production and it only lacked the investments, which have arrived at the right time.

Mr Jiménez also feels it was good business for Votorantim to take control of APR since the Brazilian firm came into a company where much work was needed and Votorantim are in a position to do it."

APR is located in central Colombia's Boyacá department, an area with all of the natural resources the steel sector needs like iron ore, lime and coking coal.

Votorantim plans to invest USD 70.2 million in APR during 2008 to improve productivity, explore iron ore and coal reserves, and address environmental issues to make the company more competitive.