BNamericas quoted Mr Omar Martinez president of steel industry association ACES as saying that Venezuelan state steelmaker Sidor's production in 2011 will fall to its lowest level in recent years.

Mr Martinez said that "The company has not announced its production figures, but it doesn't deny that the numbers are low. Sidor was aiming to close 2011 with 2 million tonnes, but given the company's situation, I don't think it will reach that figure."

According to Mr Martinez, the company is bankrupt and is not paying off its debts. He said that "It's not paying the class B shareholders or the suppliers; it's not even paying municipal taxes."

Mr Martinez said that last week, a strike by workers, which lasted more than six days, further affected Sidor's production levels and the local steel market. To add to the problem, state owned iron ore producer Ferrominera Orinoco will close 2011 with production of 11 million tonnes, which is lower than in recent years. He added that "These low levels are also affecting Sidor."

Sidor, the biggest steelmaker in Venezuela, has liquid steel capacity of 4.2 million tonnes per annum. Production in 2010 was approximately 1.8 million tonnes.

(Sourced from www.bnamericas.com)