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Chile: The closure of Huachipato Plant, a devastating blow to the Biobio Region

Scarlet Ibarra / March 26, 2024 | 09:18
The Union No. 1 and No. 2 of Huachipato Workers, belonging to the CAP Group, Compañía de Aceros del Pacífico, in Chile, called for a demonstration in response to the indefinite suspension of the steel mill.

A few days ago, in the Biobío region in southern Chile, one of the greatest fears for the community in this area is being realized: the closure of operations at the Huachipato plant, owned by the CAP Group, Compañía de Aceros del Pacífico. The company has been operating in the heart of Talcahuano for over seventy years, being of great importance not only in terms of the economy and employment it generates but also in other aspects such as culture and sports. Evidence of this can be seen in the sports club that bears its name or the Artists of Steel Corporation, both entities born out of the existence of the steel mill. It is estimated that over 20,000 people depend directly or indirectly on the company.

Following the announcement on March 20th regarding the indefinite suspension of the Huachipato Steel Mill, owned by the CAP Group, the Union No. 1 and No. 2 of Huachipato Workers have called for various demonstrations to express "concern and discomfort" regarding a potential closure of the steel producer in Chile.

At 7 am this Monday, March 25th, Huachipato workers gathered at the roundabout, as indicated in the statement, and then proceeded with a peaceful march, resulting in a traffic disruption between Talcahuano and Hualpén.

Héctor Medina, president of the Union No. 1 of Huachipato Workers, told Reporte Minero y Energético that, to avoid unfair competition, they need a 25% safeguard. However, "Chile's President, Gabriel Boric, needs to sign a decree," he said, which has not yet been published in the official gazette, and they expect it to be presented today or tomorrow, as "it has been delayed a lot," and it is needed for the company to make the corresponding claims.

Regarding the proposal by Deputy María Candelaria Acevedo, from the Communist Political Party of Chile, to present a bill to create a strategic alliance between Codelco and Huachipato, similar to that of lithium with SQM, the union president mentioned that it seems excellent: "with these strategic alliances, we can implement the circular economy and thus reduce the carbon footprint, (...) that's why it's not the same for them to buy copper from China than from us here in Chile." "It seems logical and important to have a strategic alliance," he reiterated.

For Tuesday, the 26th, a "cacerolazo" is scheduled at the Higueras intersection at 7:00 p.m., followed by a march to Puente Perales, Talcahuano. Also, on Wednesday, the 27th, a march will take place from Plaza España, Concepción, at 5:00 p.m., heading to the Cathedral.

Finally, on Thursday, the 28th, a general and public assembly is scheduled at 5:30 p.m., followed by a march from the Union to Puente Perales, Talcahuano.

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