Coinciding with the energy transformation policies in which the world is committed -and Colombia is no exception-, Acerías Paz del Río strengthens the course towards sustainable development objectives.
This company, which is celebrating its 75th anniversary, is one of the companies that contributes the most employment and resources to Boyacá and to the country’s economy. Not in vain today, as the president of the company, Fabio Galán Sánchez, points out, the management of the company is essential in the construction and infrastructure processes, both in transportation systems and in buildings and civil works.
EL NUEVO SIGLO: How do you see the transformation of the company now that an environmental sustainability policy has been developed?
FABIO GALAN SANCHEZ: The transformation of Paz del Río is focused on being a centenary company and having growth leveraged on sustainability. In this sense, we have been advancing in three key pillars for the environmental sustainability of Colombia. The first is to guarantee the country a good part of the steel it will demand in the framework of the energy transition. Steel is vital in sustainable construction and for the development of the new infrastructure that will generate and transmit renewable energy. The second, and it is something in which we have made significant progress, is to have an increasingly efficient operation. The third is to apply the circular economy principle to the maximum, making optimal use of our resources and inputs. For example, from the principle that the minerals extracted from the earth return to it, we are expanding our production of Paz del Río fertilizers. A line that has been present in the company for seven decades, but that today we are expanding, betting on doubling our offer in the market.
Strength
ENS: What is the main strength of the company in the development of the country?
FGS: The security that Paz del Río gives the country of having critical and essential products for its development, such as steel and fertilizers. Being the Colombia’s only integrated steel company, that is, it produces its steel from the responsible extraction of coal and metallurgical coke, taken to the blast furnace, to then obtain the final product, we contribute to self-sufficiency, since the country can access national products, of high quality, thus reducing its international dependency and, therefore, its exposure to external circumstances.
ENS: What fundamental aspect are you going to highlight in the celebration of 75 years?
FGS: We want to highlight the legacy of Paz del Río, who for three quarters of a century has been contributing to the construction of Colombia. Likewise, it is a special occasion to reaffirm our commitment to the country and to the new generations. For this reason, our vision is to be a centenary company, that from now until 2048 we continue to contribute to the development of the country and to the dream of having their own home for more Colombians.
Transformation
ENS: How does the company appreciate the energy transformation in which the country is engaged?
FGS: In this matter the key is the transition. In this, Paz del Río has a lot to contribute. Steel will be vital for the development of the necessary infrastructure. Let’s just think about how much steel is required for the construction of wind farms, turbines, etc. At Paz del Río we are committed to sustainability and aligned with this transition to which not only Colombia, but the world is betting.
ENS: How are you going to achieve the link between the workers and the objectives of the company?
FGS: Business transformation requires the conviction of your people. After the return of Paz del Río to the Colombian business community a year ago, under the leadership of Grupo Trinity, there has been a revival of pride in the company and, especially, in his contribution to the country. This has been a motivation in our goal of being a century-old company. Our organizational culture is focused on people and their well-being. This has allowed us to align the objectives of the workers with those of the company, and, of course, with those of the country.
ENS: How has the company’s participation in the country’s steel market been?
FGS: Paz del Río contributes 22% of the national demand for steel. This is an important volume that fills us with pride and commitment to continue working for Colombia, contributing to its development.
Employment
ENS: How much employment is being generated?
FGS: Paz del Río is the largest generator of job opportunities in Boyacá, providing 1,726 direct jobs and more than 2,500 indirect ones. Likewise, more than 14,000 families derive their livelihood from the activities generated from the Paz del Río operation and through the productive chains that we promote. 93% of our inputs are contracted with local suppliers.
ENS: How have the first quarter results been?
FGS: The results have been positive, we continue working on operational stability and improvements to production processes, with the limitations that are seen in the current market with the drop in demand for infrastructure and housing, and that we will have to overcome as an industry.
ENS: How is the scrapping program that the company is carrying out developing?
FGS: In a positive way. And here I want to highlight that one of the great challenges that we have outlined from the steel industry, as a whole, is to continue supporting the formalization of recyclers so that they become public cleaning service providers. This program seeks to have an inclusive economy, with labor formalization and a better quality of life, while having a high component of circular economy based on the use of inputs.
ENS: What other aspects of social commitment to communities does the company develop?
FGS: In addition to generating and promoting production chains under a business policy of prioritizing local suppliers, we permanently develop various social programs focused on providing greater access to education to our communities. At the same time, working in alliance with institutions such as Sena, we bet on the generation of more talent for Boyacá. In the same way, our Train of Life and Hope continues to communicate to the inhabitants of the area for free.
We also see an extension of that social commitment in our support for the creation of ProBoyacá, an initiative of the business community in the region in favor of its people, and in which Paz del Río participates as a founding promoter member.
A year of sustainability
ENS: What are the main objectives for this year?
FGS: Sustainability, both financial and operational, and of course also understood from the environmental connotation of the word. For this we are guided by a comprehensive strategy in which, governed by good corporate governance practices, today we can say that we are a company that is in good health. In terms of production, our objective is to continue growing and from there contribute even more to the construction of the country. We have already been doing it and we are in key works such as the Bogotá subway, Transmilenio calle 68, expansion of the North highway, among many other works.
ENS: What are the main obstacles that the company has to face to meet its objectives?
FGS: More than obstacles there are challenges. The biggest of them, without a doubt, goes through the economic context and the uncertainty that this generates. Something that is not exclusive to Colombia, since the same thing is being experienced in practically all economies. The current environment of high inflation accompanied by high interest rates has an impact on the construction sector, of which we are a part. Although the panorama is challenging, it invites us as a country to find solutions and consensus in order to take the necessary measures that allow us to resume the path towards growth in a key sector such as construction and infrastructure.