Critical lack of investment is strangling CVG-Alcasa ... production of primary aluminum currently at 20% of installed capacity

VHeadline Venezuela News reports: Unified Alcasa Trade Unions (Sintralcasa) leader Henry Arias has told the local newspaper Correo del Caroni that a critical lack of investment is strangling the state-owned heavy industry conglomerate, the Venezuelan Guayana Corporation (CVG) aluminum processing subsidiary CVG-Alcasa with he result that only 123 units of a total 592 existing in four lines means that the production of primary aluminum is currently operating at 20% of its installed capacity.

Arias says that as of July 5, Line 3 accounted for 180 operational units, but that 45 are off-line since Sunday.

"This whole situation is because the company structure is taking the toll of all the years that it has not received investment, it has not kept up adequately with technology ... there is a lack of cranes, hydraulic jacks, carbons rising from their own rods, and other technical malfunctions which compromise the functioning of the units."

Members of the Revolutionary Socialist Front at Alcasa stress that the situation with the cranes is long-standing since there are 5 cranes on Line 3 and the same flaws keep on repeating themselves, no allowance is made for delays and coal efficiency factors are long overdue ... coal is used in a process of crystallizing anodes for casting. Last week, 13 crucibles were off line and only 12 were still operating. Up to August 31 the average quality of aluminum was at 60.37% with only Line 1 turning in 100% -- 2, 3 and 4 reported 92%, 22% and 72.85%.

"We are forced to send distress signals to the national government because there is nothing more for anyone to do but to call for active investment in the industry ... CVG-Alcasa has become a self-destructive undertaking despite the effort of workers who are exposed to contamination which compounds an already intolerable situation where they have to produce using obsolete equipment ... basically it is all down to mis-management of the company by the administration.". "The culprits are still those who administer the company," he said.

Arias has asked Sintralcasa secretary-general elect, Jose Gil, to dialogue with Chinese businessmen who say they are still willing to invest in Alcasa. All that is lacking is the appropriate signatures from the CVG corporate leadership to activate a $2 billion revolving fund where Venezuela has 33% and China 67%. Gil says that as a member of the National Assembly (AN) he is supporting a proposed law to generate resources for the company in a "Special Aluminum Sector Investment Law" which will have access to "rainy day" surplus revenues derived from international oil sales.

Alcasa Revolutionary Socialist Front representatives claims that experienced workers have made recommendations which have remained unheeded. They say the company must ensure that essential preventive and corrective maintenance as well as a contingency plan to combat the problem of cranes must be dealt with since it affects 3,400 workers at CVG-Alcasa.

Meanwhile, in a press release from company headquarters, CVG-Alcasa chairman, Cesar Aguilar has expressed willingness to work with the unions to achieve operational stability of the company, especially in the Lines 3 and 4 where operational levels have recorded serious deficiencies. He said he has already taken action to procure spare parts and that streamlined procedures are required to repair the cranes, as well as to repair crucibles and compressors.

VHeadline Venezuela News
vheadline@gmail.com

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