Paroversary in Puerto Ordaz

Venezuela's flagship state-owned steel mill, Sidor, showcases the logical conclusion of chavista economic management.

This, at any rate, is not in doubt.

For those of you keeping score at home, it’s now been three months since Sidor has produced steel. As in any steel at all. 

Production stopped the second week of January, for lack of needed supplies of refractory materials. When those supplies were eventually delivered in February, Corpoelec realized Guri Dam was running out of water and nixed the plan to restart production to save power.

Sidor has, in a way, become the reductio ad absurdum of the ¡Exprópiese! Era: its production has fallen a nice, round 100%.

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  1. Wasn’t Sidor LNG powered? or at least there was a plan to make it LNG a few years ago?
    I assume the usual happened, it was kept as a plan

  2. So, like, everyone is still getting paid, there is no steel production taking place and the prospects for any new production taking place is still months and months away. Right. Helluva plan. The coming economic train wreck is gonna be spectacular.

  3. I lived in Eastern Venezuela when both the dam and the steel plant were being built. They were supposed to take advantage of the rich iron ore then being mined by Orinoco Mining Company, a subsidiary of US Steel Corporation subsequently nationalized by Chávez. Wonders of government mismanagement.

  4. Not often mentioned is that the iron ore extraction operation itself is facing many problems arising from past lack of maintenance and upkeep , solving which require massive investments which the govt cant fund and which no private investor in his right mind will fund under current financially and politically chaotic conditions ………!! with the power generation deficit which now hobbles all industrial production in Guayana the situation is even worse.!!

    Never has government mismanagement been so destructive of a countrys wealth and well being ………!! and the thing is that most ordinary voters havent a clue as to the existence of such mismanagement and have until quite recently given many years of enthusiastic support to the agents of such mismanagement ……….which makes us wonder whether as a people we are really competent to decide who should govern us …….and if not , what can be done about it.!!

  5. Why are you complaining you have to thanks that “stoppage” otherwise the Guri damm would have reached collapse zone several days ago

  6. So, now steel production is sacrificed, just like they sacrificed aluminum production. Of course, this will soon paralyze the construction industry and probably others. They will stop at nothing to survive just one more day in power, no matter how much damage they do in the process.


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