Bolivia inaugurated a new steel plant in Puerto Suárez, financed largely by a $546 million loan from China. The plant aims to cut metal imports by producing around 200,000 tons of steel annually. This project aligns with China’s Belt and Road Initiative, enhancing its influence in South America.
Bolivia recently opened a new steel plant in Puerto Suárez, funded primarily by a $546 million loan from China’s Export-Import Bank. This initiative aims to decrease Bolivia’s dependence on metal imports while leveraging a dormant natural resource. President Luis Arce emphasized the project’s significance for national prosperity and local benefit, marking a crucial investment in the country’s industrial capabilities.
The new facility is expected to produce nearly 200,000 tons of steel annually, which could replace up to 50 percent of current imports. Jorge Alvarado, representing the Bolivian public company responsible for operations, highlighted that this production would help prevent over $250 million from leaking out of the economy each year. The plant not only supports national industry but also aims to stabilize the country’s economic situation, strained since 2023 due to extensive fuel subsidies.
This project aligns with China’s Belt and Road Initiative, reflecting a strategic expansion of China’s economic influence in Latin America amidst escalating geopolitical tensions. The Mutun site, known for its substantial iron ore reserves exceeding 40 billion tons, positions Bolivia as a critical player in the global steel market. As the region encounters pressures from the U.S. amid its rivalry with China, Bolivia’s partnership with the Asian giant could redefine its economic landscape.
The inauguration of Bolivia’s steel plant is a significant step aimed at reducing import reliance and enhancing local resource utilization. Funded by Chinese loans, the project is expected to produce substantial steel outputs while helping stabilize the national economy. In light of global economic dynamics, this initiative underscores Bolivia’s strategic choice to foster partnerships that may shift regional economic alignments.
Original Source: www.hurriyetdailynews.com
