Saturday, September 22, 2012

Metals - Colombia - Imports cause plant shutdowns, job losses in local steel sector - union

By Harvey Beltr?n?/?Business News Americas

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Brazilian steelmaker Gerdau has closed two of its Colombian plants due to a sharp increase in steel imports in the local market, the president of Sintrametal metalworkers union, Mauricio Castro, told BNamericas.

"At the Tocancip? plant 190 workers lost their jobs, and at the Sidemu?a plant, located in Sibat? district, another 90 workers have been dismissed," Castro said.

Both plants are located in the department of Cundinamarca, in the country's central region.

Castro said that due to product "invasions" there will most likely be large job losses at local steel producer Sidenal, located in Boyac? department, at the end of September.

Boyac? accounts for 52% the country's steel production.

"We're facing a rather large challenge with our companies in the sense that they cannot hide behind this situation in order to close down plants, even more so when we have pending collective agreements due in December," Castro said.

Workers in the sector have called on the government of President Juan Manuel Santos to reconsider the signing of free trade agreements (FTA), which are being negotiated with Turkey and South Korea, since the country is now importing large amounts of Turkish products.

Given the situation, the sector is organizing a forum in order to explain to workers and to the community the motive for the plant shutdowns.

In January, however, the national industry association (ANDI) predicted this year's steel production will be 1.8Mt, an increase of 5% compared to 2011.

In 2012, the upward growth trend seen over the last few years will continue, though at a more moderate rate, said the association.

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Source: http://member.bnamericas.com/news/metals/local-imports-cause-plant-shutdowns-job-losses-in-steel-sector-union

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