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Huachipato Steelworks Halts Operations Indefinitely

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• The historic steel company in Talcahuano stops production after deeming measures against unfair competition insufficient.

The emblematic Huachipato Steelworks, with over 70 years of history in the commune of Talcahuano, Biobío Region, has announced the indefinite suspension of its operations. This decision comes after the Anti-Distortions Commission recommended President Gabriel Boric to impose average surcharges of 15% on imports of steel bars and grinding balls—a measure the company's management deemed insufficient to counteract unfair competition, particularly from China. According to Nicolás Burr, general manager of CAP, the group to which Huachipato belongs, a financial impact of up to $100 million is anticipated next year, with an estimated accounting impact between $270 million and $330 million due to the impairment of the steelworks' assets.

The suspension will directly affect 1,375 employees and an unspecified number of indirect jobs. Julio Bertrand, the company's president, expressed his regret over the loss of a key company for the region and the country, thanking workers and authorities for their support over the years.

The company had been clear about the level of distortion caused by Chinese steel and that the requested measures were the only way to level the playing field and make CSH's operations viable. Despite the authorities' acknowledgment of distortions and unfair competition, the imposed surcharges were lower than requested, leading the company to make this "painful" decision.

“I especially want to thank our workers, their representatives, and the regional authorities and industrial associations that have supported Huachipato Steelworks. Today, we make a very painful decision, but we carry it out with the conviction that we have done everything in our power to maintain an industry that is strategic for the region and the country,” added Huachipato's president.

For his part, César Garrido, general manager of Huachipato Steelworks, emphasized that the company had been “clear about the level of distortion caused by Chinese steel and that the requested measures were the only way to level the playing field and make CSH's operations viable.”

Despite this, he acknowledged “that the authorities recognized the existence of distortions and unfair competition, but unfortunately, the commission established surcharges lower than those requested.”