Agencia Bolivariana de Noticias reported that Venezuela and Cuba signed an agreement to create a joint steelmaking company called Aceros del Alba CA, which will make stainless steel products in Venezuela.

The paper said that company’s, whose USD 1.5 billion investment will come from Venezuela, plans to produce 500,000 tonnes of stainless steel and the new steelmaker will be located in Venezuela's eastern state of Monagas.

It said that 51% will be owned by Venezuela and 49% owned by the Cuban group, Acinox Steel Industrial Group.

The report added that a ferronickel plant will be built in Cuba to provide the raw material for the steel plant. The plant will be 51% owned by Cuba and 49% owned by Venezuela.

Mr Rodolfo Sanz minister of basic industries and mining of Venezuela said that the steelmaking plant should begin construction this year and be operating in three years.