The president of Chilean steelmaker CAP says the firm will continue expanding into other Latin American markets with the support of its main stakeholder, Mitsubishi, local media reported Wednesday.
Back in February, Japanese steelmaker Mitsubishi increased its ownership of CAP from 12.5 percent to 19.3 percent. Furthermore, CAP sees Mitsubishi as an ally to expand and reach new markets.
“We are already present in Argentina with a fabrication business that is growing; in Peru, with our subsidiary Cintac. All developing with advanced technology. Moreover, we are looking at other countries in the region, exploring other markets,” said CAP’s president, Roberto de Andraca, in an interview. (Mr. Andraca did not specify which markets in Latin America the firm is planning to explore.)
Concerning the current state of the overall steel market, Mr. Andraca said, "The sun is coming out, but it is still not burning.” However, he believes the demand is rapidly improving in Chile and that he expects positive results in Q4 of this year.
CAP’s president also pointed out that the firm is evaluating expansion projects in Huachipato that willcost approximately US$2.4 billion and in Compañía Minera del Pacífico with investments nearing US$2.0 billion. Andraca said that in the case of the latter company, despite the crisis, the firm has been been conducting mining explorations in their fields to uncover new reserves of iron ore.