BNamericas reported that the Venezuelan basic industries and mining ministry will install new furnaces in the long steel area at local steelmaker Sidor in order to produce the raw materials needed to supply the new seamless tube social production company.

Mr Ivan Hernández deputy Mibam minister told BNamericas that "We are going to install a 150,000 tonnes per annum electric furnace, a ladle furnace and a continuous casting machine in order to supply the new seamless tube plant that is being built with raw materials."

According to Mr Hernández, recently nationalized steel tube maker Tavsa, which is situated within Sidor's facilities, will also provide raw materials for the project. Tavsa has production capacity of 80,000 tonnes per annum of seamless steel tubes, which are used for the oil sector.

It may be noted that in 2007, the Venezuelan government announced construction of a USD 830 million facility for manufacturing 280,000 tonnes per annum of steel tubes for the oil and gas industry. The plant will be built in the Matanzas industrial zone of Puerto Ordaz city and will include a rolling and finishing mill.

(Sourced from www.bnamericas.com)