State-run steel maker's losses may account for USD 580 million

Steel and iron company Siderúrgica del Orinoco (Sidor) has reported losses accounting for USD 580 million and liquid steel output by the end of the year at 1.8 million. In other words, production will be below the company's capacity, 4.3 million tons, said Sidor's principal director Pedro Acuña Grahan on behalf of shareholders class "b".

During a board of director meeting held in Caracas, the board reaffirmed to the authorities the need to inform all small partners and the country itself about the running of the steel maker. "Since 2008, when the Government took control of Sidor, the CVG (state-run company Corporación Venezolana de Guayana) has unilaterally managed the company without giving explanations about their management in areas such as accounting, finance, trade, environment, and labor. It has ignored our legitimate right to be informed and participate in decision making." 

Acuña remarked that before making any use of the resources "an auditing must be conducted to inquire into the current situation of the company. It is also important to determine those responsible for its reported damages."

In his view, "when the Government took control of the company, its assets accounted for USD 3,400 million roughly. Today, Sidor's debt is over USD 900 million and its assets have plunged to the extent that the company's output capacity has shrunk by 50%. Its technological infrastructure has been destroyed."

Translated by Jhean Cabrera