Bolivia Launches New Steel Plant Funded by Chinese Investment

Bolivia has inaugurated a steel plant in Puerto Suárez with a $546 million loan from China to reduce metal imports and strengthen the local economy. The plant is expected to produce 200,000 tons of steel annually, potentially replacing 50% of imports and preventing a substantial currency outflow. This project is part of China’s Belt and Road Initiative, enhancing its influence in South America under challenging economic conditions in Bolivia.

On Monday in Puerto Suárez, Bolivia inaugurated a steel plant financed by a Chinese loan. This initiative seeks to mitigate the nation’s dependence on metal imports amid a shortage of foreign currency. The Mutun megaproject, located near the Brazilian border, cost $546 million and primarily received funding from the Export-Import Bank of China, strengthening China’s presence in South America.

President Luis Arce emphasized the project’s goal, stating, “The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years.” The plant is expected to produce approximately 200,000 tons of steel annually, enabling Bolivia to “replace about 50 percent of imports” and avert an annual currency outflow exceeding $250 million, as noted by Jorge Alvarado from the operating public company.

Bolivia’s economy has struggled since 2023, with dwindling international reserves spent on subsidized domestic fuel sales. Furthermore, China’s involvement showcases the nation’s commitment to its Belt and Road Initiative, reflecting its pursuit to enhance global influence. The project emerges at a time when Latin America is increasingly viewed as a strategic focal point in the geopolitical rivalry between the United States and China.

The inauguration of the steel plant in Bolivia represents a significant step toward reducing reliance on imported metals, primarily through Chinese financing. With a production capacity aimed at alleviating foreign currency concerns and utilizing local natural resources, the project not only bolsters Bolivia’s economy but also deepens China’s investment in the region amidst a complex geopolitical landscape.

Original Source: www.france24.com