Sidor readies itself for power rationing
05/05/2003 - Source: <a href=www.latintrade.com>LatinTrade-BNamericas
Venezuela's largest steelmaker, Sidor, has introduced an energy saving plan in the face of possible power rationing on account of the currently low water levels in the Guri reservoir, the hydroelectric source for the Guayana region where the company is located. "We do not have a contingency plan as such to deal with rationing, what we do have is an energy savings policy," a company spokesperson told BNamericas. The steelmaker established last year an across-the-board program seeking savings in its operational and administrative areas. One of the first measures to be introduced was the use of scheduled maintenance shutdowns to detect and gauge opportunities to save electrical energy. This measure was extended to include availing of the unscheduled stoppages provoked by lack of materials during the general strike in Venezuela at the end of last year and early this year.
Industrial services management at Sidor estimate the energy savings plan will reduce consumption by 743 million KWH a year. By far the heaviest consumer of power at Sidor is the electric arc furnace steelmaking area, accounting for 75% of the total; followed by direct reduction, hot and cold rolling, ancillary services, maintenance and finally the administrative areas. Meanwhile other big consumers of hydroelectric power in the region who are dependent on the Guri reservoir are also taking measures to deal with the situation. Local aluminum maker CVG-Alcasa needs large quantities of power to operate efficiently. "As there could be problems with power supplies from the Raul Leoni hydroelectric power station which is fed by the Guri reservoir, and almost all our lines use electric power, we do have contingency plans and we are looking at measures to take," an Alcasa spokesperson said. The reservoir is located 90km up river from the confluence of the Caroni and Orinoco rivers in Bolivar state. Ciudad Guayana-based Sidor currently produces some 3.2Mt/y steel. The Amazonia consortium - made up of Latin American steel companies Sivensa (Venezuela), Siderar (Argentina), Usiminas (Brazil), Tamsa and Hylsamex (both Mexico) - controls 70% of the company and Venezuela's state heavy industry holding company CVG has the other 30%.