Last Thursday, June 4, two of Chile's largest steel companies, Grupo CAP and Aceros AZA, announced a strategic agreement to integrate their steelmaking operations and produce green steel in Chile. The alliance, valued at US$484 million, aims to convert the Huachipato complex using electric arc furnaces and ferrous scrap.

The operation includes a corporate reorganization in which CAP will receive US$130 million and retain a 15% stake in the new company, which will be led by AZA. This project represents a crucial step forward in the decarbonization of the Chilean steel industry and the circular economy.

The plan will be implemented in two stages, leveraging existing rolling capacity and evaluating a future investment of US$250 million for a new steel mill. 

The initiative, which is awaiting approval from the Chilean authorities, aims to consolidate Huachipato as a sustainable and strategic production hub in both the national and international markets.