2024-03-24 18:43:29
The decision that affects the company, a subsidiary of the CAP Group, responds to the impossibility of competing on equal terms with steel from China, on which accusations of dumping fall.
The Huachipato Steel Company reported during the day this Wednesday the indefinite closure of its operations, which will be completed in the next three months.
The decision that affects the company, which has been operating in Talcahuano for 70 years, was made by the CAP Group and responds to the impossibility of compete on equal terms with steel from China, on which accusations of dumping fall.
Although the Anti-Distortion Commission recognized irregularities in the import of Chinese steel, the surcharges proposed by the agency, of an average of 13% For three companies dedicated to the market of steel balls for grinding, they are lower than those requested by Huachipato.
“We were clear about the level of distortion caused by Chinese steel and that the requested measures were the only way to level the playing field and make CSH’s operation viable,” declared César Garrido, general manager of Siderúrgica Huachipato.
For its part, the company’s board of directors told La Tercera that “All the producing companies are controlled by the Chinese State and, in addition, they are large, so in practice all the steel that will be exported to Chile could be derived from the company to which the lowest surcharge is applied. , eliminating any possibility of competing on equal terms.”
Government reaction to the closure of Huachipato
Given this announcement, he Ministry of Economy He pointed out that they regret the company’s position, emphasizing that “this occurs in a complex international scenario for the steel market.” and despite the decision of the Anti-Distortion Commission to recommend the application of provisional tariff surcharges for the import of steel products of Chinese origin.”
“This proposal for provisional surcharges corresponds to the highest in decades,” they added.
However, they pointed out that this Thursday they will resume conversations with their executives to guarantee the continuity of Huachipato’s operation.
The origin of the Huachipato crisis
The Huachipato Steel Company, part of the CAP Group and mainly focused on the production of steel bars for grinding balls, It has accumulated more than US$ 1,000 million in losses in the last 15 years, so its closure was already analyzed by the board of directors in 2023.
This, caused by the emergence of China in the steel market, where the largest producer is China Baowu Group, with more than 120 million tons per year, far from Huachipato’s just over 600 thousand tons in 2022.
In 2005, China became the largest net exporter of steel in the world and a year later the Free Trade Agreement (FTA) with Chile came into effect. which liberalized import tariffs and even led Chilean companies to open their own grinding ball production plants in Asia.
Héctor Medina, president of one of the Huachipato unions, gave Pulso his version of the company’s debacle.
“This is not because the company is uncompetitive, poor or obsolete. It is a very competitive company, and in the international market we have shown that. What happens is that we have someone in this world, which is China, who is a predator of steel. They produce 50% of the world’s steel and since they are not able to consume that steel, they have a huge amount left over that they send abroad. at a price of 40%. Therefore, there is absolutely unfair competition,” the leader accused.