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Article: Feeding the dragon: driven by Chinese demand, Chilean steel maker CAP shifts its business model.(STEEL,Compania de Aceros del Pacifico)
- Article from:
- Revista Latin Trade
- Article date:
- July 1, 2006
- Author:
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How hungry is China? Chilean steel company Compania de Aceros del Pacifico (CAP) says profits from steel, up nearly 50% in 2005 to US$187 million, could be surpassed in 2006 by profits from iron ore. As much as the Chinese economy needs steel, it needs the raw materials for steel even more, and it needs them now. Ever a mining country, even Chile's steel makers are taking notice.
Accordingly, CAP has embarked on a $550 million expansion plan to boost its iron-ore business to take advantage of a booming market. "We have to recognize that we are far from the industrial activities for steel, and freight is expensive," says CAP President Roberto de Andraca. "We have ...