Competitive Advantages

1. The collection includes steel chain steel, manufacture of hot-rolled steel bars, rods, plates and wire rods (used in infrastructure), cold rolled items (used in metalworking to manufacture appliances) , flat coated (used for the manufacture of casings and packaging) and welded pipe. These products are produced from smelting processes, rolling and forging, among others. At the stage of production of steel, the most common form in the world is through the semi-integrated steel industry, which is a set of processes that use scrap as raw material of iron or steel, ferroalloys, coke and cal. 2. Policies affecting the production chain: The scrap price nationwide is low, therefore the business is to send the material in markets abroad will give a better price, affecting some small smelters material in the country due to this situation the government has imposed certain restrictions on the output of scrap copper especially in Decree No. 1771 of 2004 establishing a quota of 4,700 tons for exports of semi waste and scrap. By 2006 change to 10500 tonnes. At this time the decree no longer applies but may be put one by the constant intervention of Fedemetal camera. 3. WEAKNESSES The sector lacks export trend as demonstrates its negative trade balance. The per capita steel consumption in Colombia is low. Delay in innovation and technology development in the sector. Difficulty in access to credit. The internal rates are expensive. STRENGTHS Good name and prestige in the international arena. Stability of the workforce. Creative human capital and capacity Troubleshoot. Negotiation skills. Ease of assimilation of new Technologies. New awareness of the need for reduced environmental impact. High availability of material for recycling The high environmental impact caused by solid waste makes the recycling process and chatarrizacion count on support from many businesses and nongovernmental organizations (NGOs) worldwide, and projects that are geared towards environmental recovery have a positive response the part of government bodies. The pollution problem is serious worldwide therefore the area where we are raiding has a good future, and we hit this problem. 4. Value added The added value that our company stands for is the cost we can offer favorable because as I quoted earlier in Colombia is very low cost of scrap and because of the lack of modernization of this industry and a few businessmen who so far exist in our country dedicated to this business, we facilitate the achievement of both raw materials and cost competitiveness. Besides structured a company with a dynamic and agile operational plan based on diversification of production alternatives, which allows us to get our product in a timely, effective and efficient consumer. 5. Strategy 1: Ensure the provision and access to the raw material for the network on competitive terms. Description: Access to raw materials is essential to ensure sustainability of production and product generation. Strategy 2: Increasing the productivity of the chain. Description: Increase productivity through improved network of technology levels and skilled labor. Strategy 3: Improving infrastructure and logistics chain. Description: Improve the infrastructure and logistics chain through reductions in production costs. Strategy 4: Development and market access Description: To achieve and strengthen the company’s competitive participation in domestic and international markets, exploring the various alternatives within a legal and ethical context of the marketer. Strategy 5: The implementation of the above strategies allows us to diversify our market achieved global coverage and thus manage our product from serious analysis to markets where currency fluctuation favors us, without prejudice to our customers, achieving a stock exchange. 6 Partial Scope Agreement signed between Panama and Colombia was signed on 9 July 1993 and the Treaty entered into force 18 January 1995.

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