Corporacion Aceros Arequipa, one of Peru’s largest steelmakers, said it plans to invest over $300 million in the next 10 years to grow its operations, at the same time it expects to expand its Pisco mill.
The company confirmed this week plans to expand its Pisco mill, following the shutdown of its Arequipa mill, located in the region of same name. Aceros Arequipa decided to close its Arequipa facility following what it considered “unfair competition generated by the imports of sections from China at dumped prices.”
The company did not comment on previously-announced plans to build a new EAF mill at its Pisco plant, nor did the company clarify whether the proposed EAF mill is included in the $300 million investment announcement.
Aceros Arequipa said this week in a document filing the proposed $300 million investment is still under “evaluation” and should be analyzed by the company’s board, as they start “determining the amount of investments and their profitability.”
A media report from Diario Gestion noted 15 percent of the company’s total sales comes from the export market, mainly Bolivia, Colombia, Brazil and the US.
Despite shutting down its Arequipa mill, the company kept its distribution centers in the region to meet the demands of Bolivian clients.