Metals in the State of Atlantico

Reasons to Invest in the State of Atlántico – Metalmechanics.
2015
Investing in Barranquilla’s Metals Industry
Investing in Barranquilla´s Metal Industry
Our experience facilitating the investments of companies such as CSP Steel and Austin engineering
into Barranquilla, allowed us to realise Barranquilla´s true advantages; the city characterizes for
having a tactical location for companies of this sector.
In both cases they found in Barranquilla a
package, in which location is highlighted.
According to CSP, their geostrategic hub with
access to three major ports along the
Atlantic Coast, in conjunction with
Colombia's
multiple
bi-lateral
and
multilateral free-trade agreements (FTA) are
the key to reach new markets and be
competitive.
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Investing in Barranquilla’s Metals Industry
Why Barranquilla?
Market Opportunities
Existing Capacities
Industry Support
Metals has growing market
opportunities because this
sector is the principal
supplier for the
Construction, Mining and
Shipyard sectors, these,
have had an important
growth in the past years in
the caribbean region.
At this moment the metals
Industry is represented in
Atlantico by over 400
companies, including small
and distinguished ones like
Thysenkrupp, Sigmasteel,
Norton, polyuprotec
Ternium-Ferrasa
The government has
generated several
initiatives to strengthen
the shipyard sector,
including shipbuilding as a
potential world-class
sector in Colombia vision
2032
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Investing in Barranquilla’s Metal Industry
Contents
• Competitive Positioning
 Connectivity
 Talent
 Utilities
 Industrial Sites
• Promising Investment
 Market Oppotunities
 Barranquilla, a hub for

minning industry providers
Barranquilla, a robust cluster
for metallic structures and
building materials
•Industry Support
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Competitive Positioning
8
Competitive positioning - Connectivity
Barranquilla – strategically located to reach international markets
Thanks to its sea, river, air and land
connectivity, Barranquilla is at the
logistic heart of the Caribbean, offering
connectivity to a lucrative market of
1.200 million consumers in Central
America, USA, Canada, the European
Union and the 50 countries with which
Colombia has trade agreements.
From Barranquilla, companies have the
opportunity to use alternative port
terminals of other 2 important cities in
the Coast: Cartagena and Santa Marta
2 hours away from the city.
Miami
La Habana
San Juan
Kingston
Rio Haida
Barranquilla
Puerto Limón
Puerto Cabello
Santa Marta
Puerto
Colón
Cartagena
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Competitive positioning - Connectivity
while being well-connected to domestic
markets.
•
The city has a terrestrial infrastructure that easily connects the
industrial areas of the State of Atlántico with the national road
network.
•
The National Government is currently investing in
infrastructure for optimizing the priority port corridors between
Barranquilla and Cartagena, Barranquilla and Ciénaga and
Autopista Ruta del Sol, connecting the Caribbean coast and the
center of the country.
•
US $1 million will be invested to ensure full navigability of the
Magdalena River through its 1,092 km journey. The ultimate
goal is that the river become the major arterie for the
movement of cargo by 2019
•
40% reduction in transportation cost
Cost-effective solutions to transport cargo
domestically by river/land.
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Competitive positioning
Specialist metal terminals in the region.
• The largest multipurpose port in the Colombian Caribbean region.
• It mobilizes all types of cargo, such as containers, liquid and solid bulk, general cargo and coke.
• They have a linear dock of 1058 meters with a 36 foot authorized depth and an additional 550
meters to the boats.
• 60% of Barranquilla metal load coming through this port.
• It is the number one in steel handling in Colombia, accumulating 40% of total traffic
• Within its wide range of services, there are: maritime and fluvial services, port services, maritime
and terrestrial operation services, and a logistics center for trucks.
• Its infrastructure include a Free Trade Zone and an Industrial & Petrochemical Park where they
handle all type of cargo: Project Cargo, Containers, Pallets, Isotanks, Vehicles & Tubing.
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Competitive positioning – Talent
Barranquilla has a pool of relevant and competitive talent.
Recovery from OLE, (09/2014)
63%
2.837
PHD in Mechanical engineering
PHD in Industrial engineering
Belong to mechanical,
industrial, electrical,
mining and civil
engineering
Graduates in engineering
2012 in Atlántico
SENA Atlantico has two specialties,
metalworking and automation. It is also
chosen as the core center for the metalworking
241
industry and its has secretariat at the national
level.
795
70%
Of all the technicians
and technologists graduates between 2011 and
2012 in the Atlantico graduated in areas related
to Metalworking.
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Graduados en ATL
Atlántico’s participation in the región – graduates and other state’s reception
Total: 2.261294
Atlántico
113.628 (5.02%)
Salary: $1.547.019 COL
25.347 (1.12%)
Guajira
Recep.
Salary
19.2%
$2.150.253
Magdalena
Recep. 13.2%
Salary
$2.159.679
60.103 (2.66%)
Bolívar
Recep. 9.01%
Salary $2.467.349
Cesar
Recep.
Salary
8.94%
$2.014.372
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Fuente: Observatorio Nacional Laboral. Ministerio de Educación Nacio
Competitive positioning – Utilities
Electricity
Value per Kw – USD 2013
0,16
0,14
0,12
0,10
0,08
0,06
0,04
0,02
0,00
Electrical Substation
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Power generation with natural gas
•
•
71% of non-regulated customers (heavy users), successfully self-generate electricity used in their plants.
For consumption greater than 300,000 m3 per month (self-generation projects exceed this consumption) rate in
USD is $ 0.145 / m3.
•
Generation of energy with natural gas is better for the environment, and cheaper than coal investments.
•
Some cases of generation with natural gas:
Natural Gas per cubic meter – USD 2013
0,60
0,50
0,40
0,30
0,20
0,10
0,00
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Competitive positioning – Utilities
Water & Sewage
Value per cubic meter – USD
1,40
1,20
1,00
0,80
0,60
0,40
0,20
0,00
Barranquilla
Bogotá
Cali
Cartagena
Medellín
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Competitive positioning – Industrial sites
Available sites – Free Trade Zones
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LANDS
WAREHOUSES
M2 AVAILABLE
PRICE
Land
4.335.936 m2
Sale price: USD 55
Industrial Park
1.460.000 m2
Sale price: USD 206
Free Trade Zone
812.421 m2
Sale price: USD 234,5
Warehouses
86.768 m2
Sale price: USD 43,4
Rent price: USD 5,7
A: 28.587 m2
Sale price: USD 925
Rent price: USD 7,32
Industrial Park
B: 8.333 m2
Rent price: USD 6,42
40.000 m2
Rent price: USD 8,1
Free Trade Zone
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Competitive positioning – Industrial sites
Location of current companies
1.
2.
3.
Corpacero
Inducol
Procables
Triple-S Steel
Polyuprotec
CSP Tubo 360
Barranquilla´s Free trade Zone
18 companies of the sector
Drilling Structures
Comdistral
Casaval
1
Zona Franca La Cayena Free
Autofax
Norton
Steel pipe
Sigma Steel
IGP
Pimsa
7 metals companies
2
3
Acesco
Ternium
Thyssenkrupp
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Market Oportunitties
21
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Market opportunities
Barranquilla’s Metals Industry
42% of the imports in the
state of Atlántico belong to
metals sector
Second largest exporter of
the department after the
chemicals sector
Most imported products
Steel
Products
Steel Coils
Wire Rod
Steel Plates
Rods
Bars
Profiles
Tons
92.605
85.903
50.836
50.716
23.142
20.308
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Market opportunities
Local Market
National Market
Barranquilla is located in the
center of the 23% of Colombian
population.
The national policy of promoting the
mining sector and our proximity to
Guajira represents an opportunity for
companies that provide goods, services
or equipment to this sector. Companies
like Liebherr and Komatzu.
The project to recover the
Magdalena River´s Navigability is
currently stimulating new ports
and companies to locate in
Barranquilla in order to attend
national and international
markets. Currently the main
products imported by the industry
are Steel Coils, Wire Rod and Steel
plates.
Barranquilla and Cartagena 2013 were
the second and third cities in the
country with the major growth in
construction.
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Northern Region of Colombia
•
•
•
•
•
•
•
•
Bolívar
Magdalena
Cesar
Atlántico
Sucre
Córdoba
•
•
GDP USD
62M
23%
Twice the size of
Panamá
Three times the size of
El Salvador
Six times the size of
Nucaragua
of colombian population
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Promising Investment
25
Promising Investment Opportunities
Recent Investment in Barranquilla in the metal
sector.
Some of the most representative multinationals have
discovered the benefits of investing in Barranquilla
and the state of Atlántico. Since the year 2008, the
region has received over USD$ 256 million from
companies such as SigmaSteel, Norton, Triple S,
among others and they are also responsible for
employing 980 people.
Thanks to the positive dynamic of the sector, the
program of productive transformation (PTPPrograma de transformación productiva) is working
with the principal actors in the chain of value,
including providers, manufacturers, distributors and
consumers.
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Market opportunities
Barranquilla – A hub as provider for the mining industry
Nacional Coal Mining
State
Guajira
Cesar
2010
32.900
51.780
2011
33.000
62.627
2012
32.900
62.798
2013
32.900
62.067
2014
32.900
56.598
2015
32.900
56.245
2016
32.900
54.716
2017
32.900
54.965
Guajira and Cesar´s total
84.680
95.627
95.698
94.967
89.498
89.145
87.616
87.865
Boyaca,
Cundinamarca,
Coal Located in the center Norte Santander,
of the country
other states
Total
7.053
91.925
7.194
102.821
7.338
103.036
7.484
102.452
7.634
97.133
7.787
96.932
7.943
95.558
8.101
95.966
Units: Thousands of metric tonnes
Participation of the Caribean
Region on the national coal
mining:
92%
Source: Ingeominas/ SIMCO
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American company dedicated to the production and processing of steel tubing, specializing in
standard pipe, conduit and structural products. Its products are used in the oil and gas, energy,
construction, infrastructure, telecommunications, and other sectors . They have their plant
located in Malambo since 2013 to distribute to different markets, specially USA.
American company that has over 40 years of experience in the oil an gas industry. They
produce rig components, large-scale industrial materials and updates existing rigs. DSII
specializes in rig inspection, maintenance, installation, and repair services. They are located in
Barranquilla ´s Free Trade Zone, to export to USA.
Australian company with presence in the United States, South America and the Middle East,
responsible for the manufacture of excavators, loaders and other assembly parts for industrial
machinery. The company is located in Malambo since 2012 in order to meet the high demand
of the mining industry in Colombia
GECOLSA was born as General Electric de Colombia SA, and from that time until now is the
only authorized Caterpillar dealer in Colombia. in 1986 he became General Equipment
Colombia SA, the Colombian company national coverage.
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“We chose the metropolitan area of Barranquilla because we consider it the
industrial city in which we must be to meet the large mining industry in Colombia
because many of our customers are set in the departments of La Guajira and
Cesar, but are also developing very large projects of coal and metal mining in
other departments of Colombia "
Omar Abril
General Manager, Industrial Machinery and Equipment, Komatsu
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A robust cluster of metallic structures & building materials
Building Sector
Colombia´s growth
Caribbean region´s growth
6,38%
37,8%
Jan – Jul 2013 vs 2014
State
2013
2014
Variation
Atlántico
764.893
1.167.874
52,68%
Bolivar
568.856
756.371
32,96%
1.648.250
1.973.294
19,72%
Total Colombia
13.343.033
14.860.956
11,38%
Cundinamarca
1.387.882
1.528.436
10,13%
787.801
792.846
0,64%
1.320.171
979.788
-25,78%
Antioquia
Santander
Valle
Source: Camacol
Regarding the main departments, Atlantico is the one with the
largest increase in the number of square meters granted, an
increase of
52.68%
. The main sectors
that mark this increase is housing construction sector (representing
69%) and VIS (19%), followed by Hospitality sector (3.8%) and
Commerce (3 , 4%).
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ThyssenKrupp is a German steel industry dedicated to the foundry and steel forging.
ThyssenKrupp has around 160,000 employees in nearly 80 countries working with expertise to
develop technologies, products and services for sustainable progress. The company is
located in Malambo since 2007
Colombian company dedicated to steel processing. Some of their products are steel sheets,
roofing and structural products, among others, for construction and industry. In 2013 the
closed the plant located in the center of the country to concentrate all their production in
Barranquilla
Colombian company that manufactures beams, structural tubing, profiles, angles, tiles and
road defenses, among other products, they are located in Juan Mina since 2009, where the
plant has 12 production lines. They are located in Barranquilla to attend projects like
Cartagena Refinery and infrastructure projects.
Ternium is an Argentinean manufacturer dedicated to the production of flat and long steel with
over 50 years experience, it belongs to the group Techint. It is located in Malambo and has
over 280 employees.
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Industry Support
Source: Fundesarrollo
32
Relevant institutions
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Research and Development
•
•
•
Corporación Universitaria de la Costa - CUC: Land and structures
Universidad Autónoma del Caribe: Materials, Processes and Manufacturing
Technologies – INTEF
Universidad del Atlántico: Group of Simulation and Process Control
Universidad del Norte: Materials, Processes and Designs, Productivity and
Competitiveness, Rational Use of Energy and Environment Preservation,
Research Group Trasnporte TRANVIA, Computer Networks and Software
Engineering, Institutes of Water and Environmental Studies, Robotics and
Intelligent Systems, Gas Thermodynamics, Research Group Structures and
Geotechnics, Electrical Power Systems
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Tax exemptions
Municipality
Benefits
Barranquilla
New industrial
companies
Galapa
Malambo
Industrial,
commercial or
service
companies
Industrial,
commercial or
service
companies
Time of
exemption
Yearly exemption
behaviour.
5 years
100%: first two years
75%: third year
50%: fourth and fifth
year
60% of employess
should be from Galapa
and the 40% remaining
should be employed for
over 10 months.
10 years
100%: first 2 years
80%: third and fourth
year
60%: fifth and sixth
year
40%: seventh and
eighth
20%: nineth and tenth
60% should be
residents of Malambo.
10 years
100%
40% of the labor force
should live in
Sabanagrande.
10 years
100%
Jobs generated
40 permanent jobs.
Sabanagrande
New companies
Soledad
Industrial,
commercial or
service
companies
25 permament jobs
5 years
100%: first two years
75%: third year
50%: fourth and fifth
year
Juan Mina
Relocations or
new industrial or
commercial
companies
N/A
10 years
100%
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A robust network of suppliers and service prodivers.
Preparation
ProBarranquilla
Financing/ Banks
Law Firms
Universities
Establishment
Talent recruitment
(Manpower, Addecco, SENA)
Security
Engineering consulting
Construction
Utilities (Electricaribe, Gases del
Caribe, Triple A)
Operation
Logistics
(shipping
lines/specialist
logistics)
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How can we help?
37
Alvaro Marrugo
Investment advisor
[email protected]
ProBarranquilla
www.probarranquilla.org
Tw:@probaq
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