Sunday, 22 May 2011

BNamericas reported that the outlook for Venezuela's state dominated metallurgical sector is not good.

Mr Jorge Roig president of the country's mining and metallurgical industry association AIMM said that "The sector has been deteriorating together with the aluminum sector companies. Alcasa is technically bankrupt and Venalum can't produce half of what it did in its heyday."

He said that both companies have a lot of problems, such as a significant financial burden that is not letting them survive. The briquette makers are in a similar situation. So the news for Venezuela's metallurgical sector isn't very gratifying.

Venezuela's briquette makers include Comsigua, Orinoco Iron, Venprecar and Briqven. All of these companies were nationalized in 2009 but the government has still not made the compensation payments.

Mr Roig said that the only good news is from state steelmaker Sidor which slightly increased production in Q1. As of April, the company produced about 800,000 tonnes which is more or less the same as what it produced during the same period in 2010. With the increase in international prices it is expected to continue improving its performance.

(Sourced from Business News Americas)