Venezuela's metalworking industry is working at very reduced operations, the president of the country's production and trading federation, Fedecamaras, said Monday.
Around only 20% of all the country's medium and small industries are operating, and working around 40% of their installed capacity, Carlos Luis Gonzalez said.
Fedecamaras has said most of Venezuela's metalworking companies shut down over the past several years due to the economic situation in the country.
Sidor, Venezuela's largest steelmaker, is trying to substitute imports of steel products by allocating some of its output for the metalworking industry, however, the company has been offline during some months.
The sector got virtually no steel much of this year and also faced high labor costs, sources said.
The most needed steel products are hot-rolled coil, cold-rolled coil and other flat finished materials. Rebar and wire rod are mostly destined to state housing program Gran Mision Vivienda Venezuela.
Most of the metalworking industry depends on the supply of Sidor -- while the company was offline during July and August, resuming operations in the first days of September.
The previous decline and almost complete lack of distribution of steel in the beginning of 2017 has impacted the white goods industry the most, but also re-rolling and the metal-mechanics industry.
