CubaMinrex. Sitio del Ministerio de Relaciones Exteriores de Cuba

US Blockade on Cuba Hinders Cuban Iron and Steel Industry.

CUBA, September 22, 2010.-  As a consequence of the economic, commercial and financial blockade of the United States against Cuba, the island’s costs to acquire spare parts for the engines of the continuous tapping machine of Havana’s Antillana de Acero double up.

As a result of Washington’s policy against Cuba, US-based EMERSON Group, one of the largest manufacturers of those parts of the world, is banned from doing business with one of its neighboring countries.

Cuba is forced to import raw materials, laminates and equipment for the iron and steel industry in Europe and Asia, which brings considerable increase in shipping costs.

In addition, having direct access to the manufacturer, the spare parts would cost Antilla de Acero 10,200 Euros; however the actual cost is 21,000 or more Euros because of the need to use intermediaries.

On the other hand, the industry’s development is also hindered by fluctuations in currency exchange rates since raw materials are purchases in Euros while exports are made in US dollars, which reduces the commercial and profit margins for the island.

Also as a result of the blockade, Cuba is not allowed to use the infrastructure of the US sidero-mechanic industry, which is among the largest of the world together with Germany and Japan.

Last year, the Industrial Group of the Cuban iron and steel industry, ACINOX, had a loss of more than 9 million dollars with which more than 37,300 tons of corrugated iron that would have served to build 24,800 apartment buildings for Cuban families. (Cubaminrex-AIN)

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