CVG's Alcasa train 5 to produce additional 240,000 tonnes of aluminum
<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 22, 2003 By: David Coleman
CVG Alcasa and Switzerland-based Glencore AG say that, after several months work on the construction of a 5th aluminum reduction train, a Memorandum of Understanding has been signed by both companies in a first factory expansion phase. Venezuelan Guayana Corporation (CVG) president, Major General (ret.) Francisco Rangel Gomez views the news as "a tremendous advance for CVG Alcasa which has worked doligently to overcome a strong economic recession over the last space of years."
"CVG Alcasa was created with 5 trains in mind, but only four were constructed and then trains 1 and 2 had to be closed five years, when they (the previous government) tried to privatize it ... only two trains were left in production and it was not sufficient to achieve break-even."
The newly-announced Train 5 plans will have an important and positive impact on the southeastern Guayana region of Venezuela since it will require the participation of regional small-to medium supply industries and will generate a considerable number of jobs in road construction ... CVG president Rangel Gomez estimates some 3,000 jobs during the construction development and 270 more permanent jobs on top of 2,700 workers currently employed at CVG Alcasa whose president, Dixon Rosillon says the company now faces the real prospect of economic recovery to become a profitable force in the international market for aluminum and products. Rosillion sees full production phased in over the next 36 months after the construction work begins early next year on completion of environmental impact and other studies and recommendations.
Glencore International AG director general Michael Ambrusten says the signing of a Memorandum of Understanding is an important first stage from which will derive contract definitions and other processes to begin construction of the new Train 5. Last February, CVG Alcasa had announced that it would enter into a joint venture led by Glencore also with the participation of French Pechiney and US Fluor Daniel.
Rangel Gomez says "CVG Alcasa is currently producing 210,000 tonnes of aluminum per year and the incorporation of Train 5 will add another 240,000 tonnes to arrive at 450,000 metric tonnes per year ... bringing additional revenues in the order of US$350 million ... it is yet another example of renewed faith in foreign investment in Venezuela ... we're talking of an investment in the region of $650 million where Alcasa itself will contribute $105 million with the remaining capital from Glencore to build what is today recognized to be the largest aluminum reduction facility in Latin America.