BNamericas reported that representatives from Venezuelan state steelmaker Sidor's Unidad Matancera union have asked the government for USD 1.5 billion to return operations at the plant to normal.

UM leader Mr Manuel Rodríguez told BNamericas that "The money will go toward making improvements to the production plant, such as for the billet furnace, and to installing a new rebar line." He added that te aim with these improvements is to increase the production capacity of each of the areas.

Another project that the union is proposing is rebuilding slab furnace 3, which would allow for the production of stainless steel, as well as building a new hot rolling line to manufacture stainless rolled products.

Mr Rodríguez said that the proposal will help generate more jobs, so it also involves the discussion of the collective contract.

In 2010, Sidor board member Mr Pedro Rondón told BNamericas that the company needed to make investments to improve productivity.

At the time, Mr Miguel Vásquez told BNamericas that although Sidor's energy supply had returned to normal, its production was still affected by the lack of investment in infrastructure, such as repairs to work zones, improvements in safety and upgrades to the furnace area.

The Sidor plant, the biggest steelmaker in Venezuela, has a liquid steel capacity of 4.2 million tonnes per annum, but in recent years it has not exceeded 2 million tonnes per annum.

At the beginning of 2010, the company announced a 67.8% reduction in its investment budget for the year from the original US$168mn to USD 54 million because of the impact the energy crisis had on operations. The Sidor plant is located in Bolívar state's Ciudad Guayana.

Source - Business News Americas

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