Danieli, CVG sign steel deal

Danieli, CVG sign steel deal

Italian equipment and steel plant manufacturer Danieli and Venezuela's state heavy industry holding company CVG signed an agreement to develop the Qualimetal steel project in Venezuela. The investment for the project is estimated to be $572 million. In line with the deal, Danieli and FMO (Ferrominera Orinoco), a CVG subsidiary, will create a special company called Qualimetal, which will conduct the feasibility study of the Qualimetal steel project. CVG will hold a 51 percent stake in the project, while the remaining 49 percent will be held by Danieli. The construction of the plant is scheduled to begin within two years. Qualimetal will be designed to produce naval-quality steel to meet the needs of local shipbuilding industry.