El Universal reported that Venezuelan basic industries output capacity is still facing the impact of low production registered in 2005-06. Fitful supply of raw materials along with management and labor issues limited the operation of the industries.

Data released by the Central Bank of Venezuela on the physical production index at the end of the first half of 2012 show that both primary aluminum and primary steal output went down 29.52% and 25.73%, respectively.

In recent days, the authorities informed the economy recovered (5.4%) in the second quarter of the year, yet the manufacturing sector, Gross Domestic Product major contributor, reported an output increase of just 0.4% due to the negative results in state owned companies, being the cement company the exception as its production heightened by 9%.

Upon the presentation of the economic results, the Minister of Finance Mr Jorge Giordani asserted that the reactivation of the state industry was vital.

Throughout the first half of the year, workers and directors of state owned iron and steel company Siderúrgica del Orinoco (Sidor) reported that the lack of raw material and low investment were bringing the operations down.

They also informed that income was low so as to meet debts contracted from state suppliers.

Source - El Universal

(www.steelguru.com)