GRAL. HERNÁN BEDÓN
We have historically provided the defense sector with military equipment. Over the years, the company grew, and we started to produce weapons and ammunition. We began producing explosives for military use, and today we sell our products to the construction sector for hydroelectric projects, roads, mines, and oil.
Our explosives production unit has become increasingly more important, and we have established a strategic alliance with the Austin Powder Company in the US.
As the cities of Guayaquil and Quito grew, they got closer to our facilities, and because we are also near flowing water, we had to invest a lot in water filters because of the smelting furnaces. The furnaces also produce a lot of emissions, and so we also invested in decreasing the chemical component.
The main source of investment during this period has been from the government of Ecuador. The authorities have developed key infrastructure projects and invested around $5 billion in the sector for the construction of roads and bridges.
Today, the demand for steel products in the housing and transport segments of the construction sector is fully covered by national producers. These segments have enabled the steel-manufacturing sector to experience an annual sustained growth of 8% over the last few years.
Currently, the sector is mainly focused on meeting local demand. A few years ago, imports outweighed local production, and one of our main targets was to turn this situation around. Fortunately, we can say that we succeeded.
Acero de los Andes focuses on the energy, industrial, and construction sectors. At the same time, we are broadening our business strategy to also embrace activities within the mining sector.
Acero de los Andes has never had an accident in its operations, and that is key to gaining our clients’ trust both at the local and international level, because we work with many foreign companies within the oil industry.
The oil industry in Ecuador is developing very fast, and that offers us great business opportunities to keep expanding our activities and maintaining our leading position in the sector. I believe the oil industry is entering a new stage of development through the enhanced recovery rates from mature fields.
© The Business Year