Industry News

In the early morning of September 16, the Huachipato Steel Plant, the largest steel plant in Chile, was officially shut down, ending its 74-year operation and causing a shock to the local economy. It is reported that the closure of the steel plant not only directly affected the livelihoods of at least 2,700 employees in the plant, but also affected up to 20,000 indirect jobs closely related to the steel plant's business. In a statement, Huachipato Steel Plant admitted that the decision was "forced" and behind it was its increasingly severe financial situation. From the large-scale export of steel products to Asia in 2019, the steel plant had accumulated losses of more than US$700 million by the first quarter of this year. In fact, its losses in 2023 were as high as US$385.5 million. After entering 2024, the loss momentum has not slowed down, and it lost another US$41.8 million in the first quarter. Since March this year, the steel plant has been on the verge of suspension of production.

This closure is undoubtedly a major blow to the local steel industry. Huachipato Steel Plant is located in Talcahuano, about 500 kilometers south of Santiago, Chile. It has been a leader in Chile's steel industry since 1950. Its product line covers grinding rods, wire rods, concrete reinforcement and a variety of special steels. It is an important supplier to the Chilean long steel market. According to local media reports, Chilean Mining Minister Aurora Williams once expressed regret for the closure of Huachipato Steel Plant. She said that the closure of the steel plant obviously violated the wishes of the local government and its commitment to the workers. Now the government's focus must be shifted to solving the unemployment problem caused by the closure of the steel plant.