Mexican longs steelmaker Deacero said this week it will no longer build an anticipated steel mill in the region of Barranquilla, Colombia, due to electricity connection issues.
Deacero intended to spend a combined $240 million to build the mill. Currently, Colombia produces about 1.3 million mt of steel per year out of an annual domestic demand of 3.7 million mt; the country imports steel from China, Mexico and Chile.
Deacero and the G&J Group have been mulling the construction of a mill in Barranquilla, Colombia, for about four years, according to a media report. Deacero said on Monday through a press release that private land owners have asked too much to allow Deacero have an electricity transmission line cross their property.
Deacero needs to get electricity from a substation of Colombian transmission company Transelca in Nueva Barranquila to the project in a 3-km distance area. Deacero has proposed the transmission lines could be built in public properties.
The mayor of Barranquilla, Alejandro Char, said the city will make all needed efforts in order to continue the project in Barranquilla.