BNamericas quoted Mr Ramiro Garzón president of Ecuador's metalworking industries association Fedimetal as saying that thanks to investments, the Ecuadorian steel sector has idle installed capacity of around 30%, which could be used within four years.
Mr Garzón said that "Steel sector investments are made with the medium and long term in mind. In Ecuador investments are done thinking about the country's major infrastructure needs and that at some point we will reach the limit of installed capacity."
According to Fedimetal data, Ecuador has a population of 13 million and total national steel consumption of roughly 1.2 million tonnes per annum, meaning that per capita consumption is 92.5 kilogram. This consumption level is a good sign for future steel sector developments.
According to Mr Garzón, idle capacity is available to supply the local market and even tap into the export market as well.
Currently there are three steel companies operating in Ecuador namely, Andec Funasa, which recently increased production capacity to 250,000 tonnes per annum, Adelca, with capacity of some 200,000 tonnes per annum and Novacero, with initial production capacity of 120,000 tonnes per annum and projected capacity of 250,000 tonnes per annum.
(Sourced from www.bnamericas.com)
