It is reported that Venezuela plans to build a 1.5 million tonne per year steel plant with the help of a Brazilian company by fourth quarter of 2011.

Venezuela's Ministry of Basic Industry and Mining signed a letter of intent with Brazilian construction company Andrade Gutierrez to build the plant in the southern state of Bolivar.

Mr Rodolfo SanzMIBAM Minister said "This letter of intent will serve to put into motion the construction and financing of the new National Steel Company (Siderurgica Nacional) to be located in Ciudad Piar, in Bolivar state.”

Mr Sanz added that the new plant would work in complementary fashion with recently renationalized Sidor steel to produce steel micro alloys for the military and construction sectors that Sidor currently does not manufacture.

He added that "As a result of this project, Venezuela will increase its annual liquid steel output by 6 million tonnes, as well as be in a position to manufacture a whole series of products to spur the development of the domestic steel industry.”