Sidelpa exporting part of production despite domestic demand

Part of the production of Sidelpa, the Colombian subsidiary of Brazilian flat steel producer Gerdau (NYSE: GGB), is being exported, the president of the CUT union in Valle del Cauca department, Alvaro Jose Vega, told BNamericas. "Production is being handled by [steelmaker] Diaco, also a subsidiary of Gerdau, and I understand that a small part is being exported to countries such as El Salvador, Ecuador and even Brazil," Vega said. The rest of Sidelpa's production is being used in Colombia, which has a production capacity of less than 900,000t but where about 1.2Mt/y of steel is consumed, according to Vega. "This means more than 300,000t of steel has to be imported and, considering that Sidelpa is a specialty steel producer, it makes sense that exports are minimal," he said. Sidelpa is operating even though Gerdau announced its closure one year ago, Vega told BNamericas earlier this week. Even though the company is producing behind closed doors, it still needs to settle all of its legal matters and labor disputes before it can operate at ease, he said. Sidelpa, located in Valle del Cauca's Yumbo municipality, has been in existence for more than 40 years and is the only specialty steel producer in Colombia. It was taken over by Gerdau in December 2004.