Venezuelan steel project agreed

Venezuela’s state heavy industry holding company CVG and Italian equipment and steel plant manufacturer Danieli have signed an agreement to develop the Qualimetal steel project. Danieli and CVG subsidiary FMO (Ferrominera Orinoco) will create special company Qualimetal, which will carry out the Qualimetal steel project feasibility study to decide which products need to be manufactured. It is likely that the new company will manufacture naval-quality steel to meet the local shipbuilding industry’s needs. Project investment requirements are estimated at $572 million and would create 500 jobs.

CVG will hold 51% of Qualimetal with Danieli holding the 49% balance. Plant construction is due to start within two years and the plant would be fed directly with briquettes coming from the Minorca plant in Venezuela.

CVG and Danieli have been discussing the project for the last 30 months. Danieli, which exports 99% of its output throughout the world, has five main production centers in Europe. The company, which has an office in Belo Horizonte, Brazil, designs and manufactures machinery and plants for the steel industry.