Govt, Iran to jointly undertake US$200m cement plant

Govt, Iran to jointly undertake US$200m cement plant
Published: 04 August 2005

Venezuela and Iran plan to build a US$200mn cement plant with construction commencing in three months as part of the political and economic alliance signed in March between the two nations, according to local news reports.
 
The plant, which will have a cement production capacity of 1Mta, will be set up in the northeastern state of Monagas, basic industries and mining minister Víctor Alvarez was quoted as saying.  It will produce Portland types I and II cement and will be 51% owned by Venezuela and 49% by Iran. 
 
President Hugo Chávez has complained of high cement prices because they make construction more expensive, which in turn has serious effects on government infrastructure investments and the costs of state-owned oil company Petróleos de Venezuela (PDVSA). 
 
Iran and Venezuela have strengthened their relationship significantly in recent years through joint investment projects including car and tractor assembly plants, a food manufacturer and now the cement plant.