Replacing steel imports with local labor-made rebars is a huge challenge for the new rolling mill plant, which has been operating for three months now.
Since the first commercial shipment of rebars made in Palmar de Varela was carried out on November 27, this 100% Colombian product has been gaining more ground in the local market, generating a supply opportunity in the face of the global steel shortage caused by the COVID-19 pandemic.
"We intend to replace steel imports at the new plant, incorporate into the general market, and provide our clients with local products so they can feel reassured of having a supplier that not only is closer to them but can also supply them on a more regular basis. This would also reduce purchasing cycles, generating a greater fluidity and stability within the market", said Jaime Solanilla, Business Manager of Ternium.
The reception of the new products has been so successful that the first batch of 3/8" rebars, produced for the first time by Ternium Colombia, was sold in one week. In other words, more than 4,000 tons of our steel is being used in the construction industry as reinforcement for civil and infrastructure works.
Although the plant is not yet at its full production capacity, which reaches up to 520,000 tons of rebars per year, the company is gaining a greater market share as production increases.
"Today, we are known as the largest steel producer in the country. Now, the commitment and the challenge we face is to improve our services for our clients through our hard work and in compliance with all safety standards", said Alejandro Zuluaga, Head of Transportation and Inventory.
Three months into the operation of the new plant, the rebars that were produced there are now reaching the entire national territory, from La Guajira to Nariño, where they are commercialized through large regional and national traders and distributors, which have already had the opportunity to see and try the product.
"From the historical average of monthly sales generated by the company, it is expected that in the second quarter of 2021 we will double the number of steel sales in the country with the start-up of the plant", explained Solanilla.
"60% of the personnel working at the plant is from Palmar de Varela, which contributes to the generation of employment in the Atlántico department. This is how Ternium has become a key element in the regional industrial development and in the national economic recovery", said Sebastián Castro, President of Ternium Colombia.