Siderúrgica Huachipato suspends operations due to the impact of Chinese imports

Photo: Wikimedia Commons.

The Compañía de Acero del Pacífico (CAP), one of the leading companies in steel production in Chile, announces the suspension of operations at Siderúrgica Huachipato, an emblematic industrial plant located in Talcahuano in the Biobío region. This decision, taken amid the siege of Chinese imports that have impacted the local market, reflects the challenges facing the national steel industry.

The closure of Huachipato, after more than 70 years of activity, leaves a profound impact on the economy and the local community. Mayors in the area have expressed concern about the economic and social repercussions this measure will bring. Álvaro Ortiz, Mayor of Concepción and President of the Association of Municipalities of Biobío, has emphasized that the closure of Huachipato could set a worrying precedent for other companies in the region.

The decision to suspend operations at Huachipato comes after the Price Antidistortion Commission, dependent on the Ministry of Economy, detected signs of dumping by Chinese companies. Despite the proposed tariff surcharges to protect domestic production, CAP considers these measures insufficient to counter the losses caused by Chinese competition.

The closure of the steel plant will leave more than 22,000 people unemployed. In response to this situation, the Government, led by President Gabriel Boric, has committed to finding alternative solutions to ensure the plant’s operational continuity and mitigate the impact on the community.

This scenario is not exclusive to Chile, as Chinese imports have generated distortions in local markets in other Latin American countries. For example, Brazil and Mexico have implemented antidumping measures to protect their steel industries from unfair competition.

CAP urges international collaboration and the adoption of appropriate measures to address this issue, which not only affects the steel industry but also the economic and social development of the region.

The company reaffirms its commitment to the country and the community, working together with the Government and other stakeholders to find sustainable solutions to overcome these challenges and ensure a future for the Chilean steel industry.

Main source:

La siderúrgica chilena Huachipato paraliza sus operaciones en medio de la crisis por la competencia del acero chino | El País (2024, marzo 21).

Other related sources:

El Gobierno chileno dice estar poniendo todo de su parte para evitar cierre de siderúrgica  | Infobae (2024, Marzo 21). 

Chile se convirtió en la nueva víctima del acero chino que inunda América Latina | Infobae (2024, Marzo 22). 

Diputados anuncian proyecto de reforma constitucional para aplicar arancel de 50% al acero chino | (2024, Marzo 22).