Siderperu Suspends Multi-Million Dollar Chimbote Project Amid Chinese Initiative Uncertainty

Siderperu, the steel company controlled by Brazil’s Gerdau, has suspended a multi-million dollar investment project in Chimbote. The company cited market uncertainty stemming from the progress of Chinese steel initiatives in Chilca, south of Lima.

Aldo Tapia, CEO of Siderperu, stated that the company has paused significant projects while awaiting decisions from Peruvian authorities regarding Chinese investments that the company claims may not comply with national laws.

Tapia expressed concern regarding the lack of equitable competition in the local steel market and noted that new projects in Chilca may not be adhering to the environmental standards required by the country.

According to Tapia, there are at least two initiatives currently active in Chilca. One is backed by Chinese capital and is reported to be approximately 30% complete, while another project located six kilometers away has faced repeated postponements of its public hearings.

The CEO warned against the potential for market distortions, drawing a comparison to the regional industry.

No queremos que se replique en Perú lo que ocurrió con la siderurgia chilena

Aldo Tapia, CEO of Siderperu

Despite the suspension of the Chimbote project, Siderperu reported strong financial growth for the first quarter of 2026. The company achieved revenues of S/ 633 million, representing an 18.2% increase compared to the same period the previous year.

Other key financial metrics for the first quarter of 2026 include:

• An EBITDA of S/ 92 million, an increase of 42% year-over-year.
• A net profit of S/ 51 million, which is a 55% increase compared to the previous year.

The company’s operations for the production of steel tubes and rods continue to rely on a network of more than 300 local scrap suppliers.

The current tension over Chinese investment coincides with ongoing legal disputes regarding trade practices. Siderperu is involved in a case concerning wire rods, where companies have taken an anti-dumping ruling by Indecopi to a second instance.