Venezuela to decrease steel output due to energy shortage

Wednesday, 23 December 2009 16:59:14 (GMT+2)

Facing heavy draught, Venezuela will decrease production at the country's largest steel plant and at two aluminum smelters in order to decrease energy consumption. The government has ordered a 20 percent cut in electricity use and set restrictions for state producers as the water level at the Guri hydroelectric dam, which delivers about 70 percent of the country's electricity, has dropped to dangerous levels, international news sources report.

As published in the country's Official Gazette, companies that require more than 5 megawatts and apartment complexes with demand exceeding 2 megawatts of energy per month will have to cut 20 percent of their consumption compared to last year or face heavy fines. It is reported that the leading state steelmaker Sidor will shut down two furnaces to save about 200 megawatts of energy.

According to data provided by the World Steel Association (worldsteel), Venezuela produced 4.4 million mt crude steel in 2008.

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