Save
PrintChile's steelmaker CAP is pressing ahead with plans to expand iron and steel production over the next five years, but is looking to delay investments by 6-8 months to take advantage of falling raw material costs, the group's chairman Roberto de Andraca said Thursday.
Earlier this month, CAP announced it would delay a planned $500 million capital raising to fund its ambitious expansion program, to make time for management to evaluate the impact of the recent downturn in the global economy.
Speaking at a business conference in Santiago, de Andraca also said the company expected to achieve lower prices for machinery, coal and other key inputs during negotiations scheduled to take place in the first quarter of next year.
The company has also halted one of two furnaces at its Huachipato steel works in southern Chile, bringing forward a maintenance originally scheduled for September next year.
"People are scared so sales are likely to be lower in October, November and December but we expect them to recover in January," Andraca said.
CAP produces around 1.2 million mt/year of steel, largely sold in Chile, and around 7 million mt/year of iron ore, most of which is exported to steel producers in East Asia. –Platts
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Online inquiry
Contact
Tell Us What You Think