Peruvian steelmaker Aceros Arequipa is considering concentrating output at its Pisco mill, which is located in the country’s south-western coastal region of Ica.
In a document filing at the nation’s securities exchange commission, Peru’s largest steelmaker said it could concentrate output at its Pisco mill, but said the option it’s still “in the process of valuation.”
“There’s no decision about it,” the company said.
The company defined the move as “one of the possible alternatives” it could take, adding the decision could affect “part” of its output.
Aceros Arequipa’s response follow recent media claims that said it decided to concentrate output only at its Pisco mill. Acero Arequipa has two plants in Peru: the Arequipa plant, located in the city of same name, and the Pisco mill.
The company’s two rolling mills, each located in a different plant, have different capacities. The Arequipa mill has a 250,000 mt/year finished steel output, producing rebar, angles, square bars, among other products.
The Pisco mill has a 1.1 million mt/year capacity to produce finished steel including rods, angles, and square bars, among others.
The Peruvian steelmaker didn’t explain the reason it could concentrate output at its Pisco mill, but admitted it’s focused on improving its productive processes as it has been operating under a “very competitive scenario globally.”
Aceros Arequipa posted a PEN 31.93 million ($9.35 million) net profit in Q4, 90.7 percent up, year-on-year, from PEN 16.74 million ($4.90 million), according to company’s earnings results.