CAP estimates a financial impact of between US$120 and US$140 million from the suspension of Huachipato operations in the next 12 months, with an accounting impact of more than US$300 million.
Chilean Economy Minister Nicolás Grau has been in charge of all government efforts related to the Huachipato crisis for a year, and has several meetings scheduled for Monday in the Bío Bío region.
One of them was with the leaders of the workers of the steel company, which announced its indefinite closure for next September.
Fernando Orellana, president of union number 2, reiterated that they were surprised by the announcement, and that they will fight for the best possible outcome for the staff.
Parliamentarians from the region have reacted harshly to the company's decision, considering that the Anti-Distortion Commission agreed to grant the tariff surcharge for Chinese steel products that Huachipato had requested, corresponding to 24.9% for bars.
PS Senator Gastón Saavedra pointed out the social impact of a decision that has even brought profits to the firm.
Contrary to what Huachipato had communicated to the Anti-Distortion Commission, in the sense of not insisting on the current safeguard process that expires in September, Molycop Chile indicated that it is continuing, since the existence of dumping in steel grinding balls imported from China and the damage caused to the national industry have been proven.
Although the steel company argued that the surcharges would not be enough to generate structural changes that would ensure the viability of the company, the Minister of Economy has pointed to irresponsibility due to the lack of agreements between the two companies.
The Secretary of State headed a tripartite table on the future development of the region, in which Huachipato also participated, as highlighted by the presidential delegate in Bío Bío, Daniela Dresdner.
CAP estimates a financial impact of between 120 and 140 million dollars due to the suspension of steel operations at Huachipato in the next 12 months, with an accounting impact of more than 300 million.
On the other hand, this decision is expected to improve the CAP Group's consolidated future results, considering Huachipato's historical losses, which amounted to more than 500 million dollars in 2022 and 2023.
