Industrials

Return to Article

Venezuelan building new $2.1 billion steel plant

The Associated Press

CARACAS, Venezuela (AP) — Venezuela will help build a new $2.1 billion steel plant in southeastern Bolivar state, Venezuelan President Hugo Chavez said Friday.

Chavez visited the building site as heavy machinery began moving earth for the new plant. Brazilian investors also are participating in the project.

Mining Minister Rodolfo Sanz said the steel plant's construction will generate 7,000 jobs — and more than 1,500 jobs once the plant is operating.

The government estimated it will produce about 1.5 million metric tons of liquid steel per year. Sanz has said the steel plant could begin operating by the end of 2011.

Chavez's government last year also nationalized the country's largest steel maker, Sidor. Since then Venezuelan authorities have been locked in negotiations over compensation with Ternium SA, a subsidiary of the Argentine-Italian conglomerate Techint, which owned a 60 percent stake in Sidor.

Chavez on Friday accused Ternium of having evaded taxes while running the plant.