Metals sector seeking investors to build foundry

- Thursday, October 2, 2008

Metals sector seeking investors to build foundry

In representation of Paraguay's metallurgical sector, Walter Bogarín, manager of local company Walt Metalúrgica SRL, is hoping for foreign investors to view the country as a viable option for placing their money and supporting metallurgical growth in the region.

"The goal is to build a good foundry to produce parts in Paraguay and export them to the Mercosur. [I'm referring to] rough or machine-cast parts with more added value," Bogarín told BNamericas in an interview.

The executive added that Paraguay is an attractive option for potential investors because the country has abundant and inexpensive electric power, in addition to a young workforce that is easy to train.

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Bogarín said there are no major social conflicts in the country, nor unions hindering the development of business.

"[Investors] can also benefit from law 60, passed in 1990, that dispenses with import taxes on equipment, whether new or used," he said.

Aceros del Paraguay (Acepar) is the country's only steelmaker, which recently announced a US$25mn investment to acquire a new rolling train it plans to fire up in 2009.

Acepar is located in Villa Hayes near the Paraguay river, 37km from the capital of Asunción. The company produces plain rods for construction and other uses in addition to rods and billets for rolling.