Panama has entered an international deal with U.S. partner Schuff International that will see the emergence of a new steel venture aimed at market growth in Central and South America.

Demand for steel is growing across the region with economic development generating new resources for private and public construction projects. Demand for steel grew in Chile after earthquake damage that prompted reconstruction and infrastructural renewal across the country.

Schuff International, Inc. is the largest steel fabrication and erection company in the United States, with several steel companies, including Schuff Steel, in the group.

The new joint venture brings Schuff into partnership with Panama's Empresas Hopsa, S.A. and will be called Schuff Hopsa Engineering, the companies said.

Panama has seen its economy surge on the strength of its close trade links with both North and South American and Central American and Caribbean neighbors. Economists expect Panama to do better this year after the 2010 estimate of a gross domestic production of $44 billion.

Panama is rated as the third or fourth largest economy in Central America and also the fastest growing economy and the largest per capita consumer in Central America. In 2010 Panama ranked fourth among Latin American countries in terms of the Human Development Index. It was 54th in the world.

The World Economic Forum estimated Panama was one of the most competitive economies in Latin America by data available in 2010.

Those indicators made Panama well-placed to aim for regional expansion and growth in any area of shared interests with its neighbors.

Schuff Hopsa Engineering will focus on providing structural steel fabrication and erection services throughout Central and South America. The new company will own and operate a 52,000-square-foot steel fabrication plant in Chilibre, just outside Panama City.

Hopsa President Einar Simons indicated the new plant was a progression from company objectives set when it opened the Chilibre plant in 2009.

"As we sought ways to expand the business, it became clear that a strategic partnership with a top United States steel contractor was the best approach," he said.

The two companies earlier worked together on the Costa Del Este 25-story, high-rise in Panama City.

"We both share the same philosophy when it comes to servicing our customers and providing superior products. We look forward to great things from the new company," said Simons.

Schuff Steel is providing fabricated steel and consulting services on its second major steel project in Panama, a 26-story high-rise. For the two commercial office structures, steel fabrication was jointly provided by Schuff Steel's U.S. facilities and Hopsa's Chilibre plant in Panama. The new company, Schuff Hopsa Engineering, will pursue steel projects in addition to introducing steel as a cost-worthy and time-saving alternative to traditional concrete construction.

"Schuff has completed numerous projects in Latin America over the years and we thrive in this market. There are many opportunities for steel in the mining industry in these regions and there is also a fantastic opportunity to introduce steel construction as a beneficial and competitive alternative to concrete construction in commercial applications, said Scott A. Schuff, president and chief executive officer of Schuff International.

"As Central and South America continue to grow, the increased demand for sophisticated construction methods offers us a chance to show the benefits of steel, particularly with our design-assist method," he added.

Schuff International, Inc. has headquarters in Phoenix and employs approximately 1,200 people throughout the United States. Empresas Hopsa, S.A. is a leader in the construction market in Panama.

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