Metalworking Investment in Colombia

In Colombia, the metalworkingindustry has contributed to the development and consolidation of other sectors of the economy such as construction, automotive, appliance and machinery that require inputs of steek and iron. 

In 2014, per capita steel consumption in Colombia was the fastest growing among the countries of Latin America. Additional factors such as the growing middle class and rising per capita income boost demand for goods that require steel products as main input.

  • Latin America produces 4% of global raw steel. Colombia has the best growth in steel production in Latin America with 12% of long steel production in 2014.
  • Sustained annual growth of 8.8 % in steel consumption in recent years in Colombia, above the average in Latin America. It is expected that consumption in the country will reach close to 7 million tons in 2020.
  • Colombia is the country with the best prospects for growth in the consumption of laminates, with consumption increasing 49% over the last 4 years.
  • Consumption of rolled products in Colombia is expected to have a sustained growth 5 times greater than growth in Latin America.
  • Currently 1.5 million tons of rolled products are imported, mainly in flat steel due to the absence of domestic production.
  • Exports of steel and metal work products from Colombia have preferential access in the main energy consumption markets in Latin America and lower-than-average charged to other countries in the region.
  • Opportunities of raw materials from Brazil and Mexico with logistic facilities to import to Colombia.
  • Large groups such as TECHINT, VOTORANTIM and GERDAU have chosen to establish production plants in Colombia to cater for diverse markets in the Americas.

 

These are just some of the reasons to invest in Metalworking. We invite you to learn additional details about Colombia and why it is the perfect destination for your projects.

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Investment in Metlaworking 20161.58 MB

Investment Opportunities

  • Installation of production plants for hot rolled flat steel, long steel and non-alloy steel bars that are not produced in Colombia. Colombia is the country with the greatest growth in laminate consumption among the main countries in Latin America, increasing consumption by 49% between 2010 and 2014. This has been the result of the development of sectors such as construction and the increase in household purchasing power, which translates into greater sales of automobiles, home appliances and housing. Colombia imports around 1.5 million tons, mainly in flat steel due to the absence of national production, which represents an opportunity for foreign companies to locate their production in the country. 
  • Production of seamless pipes for the oil sector. Colombia positions itself as the third producer in South America with more than one million barrels, and it had reserves of 2,400 as of 2014, resulting in this sector producing a continuous demand for metal-working products, mainly pipes for oil and gas drilling and mining.
  • Strategic partnerships with Colombian companies in the sector requiring technology and resources to grow. There are around 1,000 active companies in the basic iron and steel industries. The sector is also supported by around 500 companies dedicated to the wholesale of construction and iron items.

Regions

Learn about the principal regions that offer investment opportunities in the Metalworking Industry:

  • Barranquilla - Atlantico
  • Bogotá - Cundinamarca
  • Cali - Valle del cauca
  • Medellin - Antioquia
  • Tríangulo del cafe

Success Stories

  • Tenaris (Techint Group): The fourth largest producer of steel tubes and of services for the energy industry in the world, with an investment of USD 240 million and new heat treatment, threaded and termination lines. In 2015 the Tenaris TuboCaribe production center opened in Cartagena, expanding the total production capacity to 250 thousand tons per year, with 27,000 m2 of new industrial facilities and 4,000 tons of state-of-the-art production equipment.
  • Ternium (Techint Group): With the acquisition of the Ferrasa company and the investments to enlarge the 130.000 m2 Manizales plant, the Italian-Argentine company Ternium from the Techint Group produces 200.000 tons of liquid steel each year which are transformed into corrugated, reinforced bars, plates, angles – for electrical towers – and gutters, products which are used in construction, infrastructure and auto car. Ternium provides 20% of Colombia's steel consumption.
  • Castem: This Japanese company, working with continuous smelting and producing high precision parts, decided to open a plant to cater for the market in the Americas, showing that the main reason to have a presence in Colombia was the quality labor and the availability of technical staff specialized in metallurgy.

Contact

These are just some of the reasons to invest in the Metalworking Industry, we invite you to learn in more detail these and more reasons why to choose Colombia as the destination for your projects.

Investment Specialist: Fabián Ortiz

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At PROCOLOMBIA we cater to international companies, large enterprises and foreign government agencies interested in investment in Colombia.

Due to the nature of our activities, we do not attend to individual or personal investment requirements.

We suggest you review our Frequently Asked Questions on Investment in Colombia before you send us your inquiries.

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