August 22, 2008

Investment projects to allow steel exports from Colombia

Mr Edgar Jiménez a stockbroker told BNamericas that Colombia has the potential to become a steel exporter if steel projects that are underway in the country continue successfully.

Mr Jiménez from local stock brokerage Promotora Bursátil said that "We have become aware of further deals among steel companies that are underway. Those foreign investments will generate a production surplus and turn Colombia into a steel exporter.” He added that “There are interesting projects from Brazil's Votorantim at Acerías Paz del Río so that company's prospects are still looking good adding that if APR solidifies its plan to boost output and upgrade technology, it will be a major step toward accomplishing that goal."

Votorantim plans to expand APR's production from 330,000 tonne per year to 1 million tonne per year in 2009.

Colombia's steel consumption averages 1.2 million to 1.5 million tonne per year. Other steelmakers in the country include Siderúrgica Nacional and Hornasa, which produce more than half of the nation's output at 750,000 tonne per year.

Steelmaker Diaco owned by Brazil's Grupo Gerdau and steel company Comsisa, in the process of being purchased by Gerdau also operate in Colombia.