Ternium Colombia’s new steel plant, which has a capacity of producing 720,000mt of steel per year will start operations in November.
The inauguration of the new plant was scheduled for April, but was delayed due to the pandemic, according to local media reports. The plant, called Palmar de Varela, will produce around 520,000mt of long and compact rolls products per year for the construction industry.
The Colombian steel industry is concerned about the increasing imports of steel products, which are hurting domestic steelmakers. The South American country consumes 1.5mn mt of steel products per year, of which, around 1mn mt is produced in the country, while the balance 500,000mt is imported.
According to a statement by Sebastian Castro, president Ternium Colombia, the country needs to implement measures to mitigate unfair imports that are hurting the industry.
Imports of long steel products increased by 1.08pc between January and March this year to 214,080mt, from 211,802mt imported in the same period in 2019, the latest data from the Colombian Steel Committee indicated.
Crude steel output fell by 71.8pc to 33,089mt in April this year, from 117,696mt in the same month last year.