A UNITED STATES DEPARTMENT OF COMMERCE PUBLICATION INTERNATIONAL MARKETING INFORMATION SERVICE COUNTRY MARKET SURVEY VENEZUELA , i LL». insaBir ■ft i. . ■ "»••*««« .• "Vr 4-1 S ^-^Htft, ■ it., tl-.t,, , i ,„„.-.».t i Ju_ MM S * ■nK3BBTB| BS iSS* » mS5» i*i a» i s km i urn..*, i •-■ .a * MBw '*■ ! aara KI OUMEJ tut rwlBwr mm. i tiKti EswKt i fflraS i M ian 1 «i-u-....i!^. L.;i.'Bn- *Y P« ! L»pt I; -* ,?, Sj ▼ ▼ w COUNTRY MARKET SURVEY enezuela INTERNATIONAL MARKETING INFORMATION SERVICE U.S. DEPARTMENT OF COMMERCE Maurice H. Stans o Secretary Rocco C. Siciliano Under Secretary * ^->^A-y^' -^V -■• w v " *■*>•- Saga » 1 J*5 ■4* \ ■- ^** ,-v- j ..-' *#" *r" **- , *. 9 ' b "*•'- ■***» * ■ #*" -&**>* " ■ - "- >* -"^' ...... -***%»— «&*• ■<£*>* -.v A picture-book fishing village on the Gulf of Cariaco. Most fishing here is done between midnight and 2 A.M., and the catch delivered to the cannery by 6 A.M. among the largest. Standard Brands de Venezuela pro- duces Royal brand vinegar and mayonnaise, puddings, and yeast. Dehydrated soups are produced by a Nestle subsidi- ary under the Maggi brand and by a subsidiary of the Corn Products Co. under the Knorr brand. This indus- try is modern in every respect and offers a great vari- ety of types. Canned soups are made by Heinz and by Taf Productos Enlatados, a local firm. Both companies also offer canned foods such as pork and beans, spa- ghetti sauces, goulash, and similar ready-made dishes. Baby foods are made by Heinz and by C. A. Venezo- lana de Alimentos (Gerber), and there are no imports. The full range of baby foods in small glass jars is offered on the market at a reasonable price and good quality. The number of food specialty plants and their production in metric tons, 1965-67, is given in table 6. Sardines, tuna, mollusks and shrimp are canned by eight plants in eastern Venezuela, although only sar- dines are canned in sufficient quantity to make some exports possible. A total of 19,292 metric tons of canned sea foods were produced in 1967, of which 440 tons were exported. Frozen shrimp exports during 1967 amounted to 3,300 metric tons, packed in waxed card- board boxes and airlifted out. The largest canners are Productos Mar C. A. and Asociacion de Pescadores de Margarita C. A. Sales opportunities for U. S. equipment manufactur- ers are good. The food processing industry is still growing, diversifying and modernizing. Equipment im- porters report great interest in modern food processing and packing equipment. Food packers interested in en- tering this market should consider licensing or joint venture operations, as there is considerable feeling among Government officials and others that the number of plants is already too large. Another major installa- tion might not be welcome. MILLING INDUSTRY Venezuela's milling industry presently consists of 12 flour mills and 21 animal feel mills, including mixing plants. The expansion of the milling industry has been made possible mainly by import restrictions on wheat flour in effect since 1958. Flour production increases are impressive, as seen below (figures in metric tons) : 1958 1965 1966 1967 Wheat 26,761 301,695 315,822 322,322 Bran 6,064 33,674 40,188 34,537 Others 3,844 44,513 44,474 47,128 Wheat is imported mainly from the United States and Canada. Corn reportedly is grown in sufficient quantities, although there are still some imports. Oats are being imported ; also barley. Wheat flour consump- tion has shown yearly increases and fresh bread is replacing the traditional "arepas" (flat toasted corn cakes) to a large degree. However, two modern corn flour mills are producing precooked corn flour specifi- cally for the preparation of "arepas" and these and other corn-flour based products are recovering some of their former popularity. The flour milling industry consists of four major companies having eight mills and a total investment of over $20 million. General Mills, Pillsbury, Bunge & Born, and International Milling have made considera- ble investments in this industry. A number of U. S. brand-name flours are on the market and control a large share of the total. REMAVENCE is the largest corn flour mill. Most of the milling equipment is of U. S. and German origin. Rice processing and polishing plants are located mainly in the states of Portuguesa and Guarico, the rice growing areas. Rice processing is done by 35 plants which produced 60,578 metric tons of polished rice for sale in bulk and retail pack during 1967. Most of the rice processing plants are Government-owned and operated. With the consolidated effort by Government and pri- vate circles to increase the cattle, hog, and poultry populations, the animal feeds industry has had a rapid development and now meets almost the entire local demand for prepared cattle, hog, poultry, horse, and pet feeds. The industry consists of 21 mills, most of them small. The largest is Protinal C. A., which oper- ates with a capitalization of close to $10 million. This plant is considered to be the largest of its kind in South America. The second largest mill is that operated by a local subsidiary of Ralston-Purina, with a subsidi- ary of Pillsbury next in size. Atlantis Venezolana C. A., in Valencia, mixes bird seeds under license by R. T. French. Canora S. A., a local company, also produces pet bird seeds. Cat and dog foods are canned by Frigorificos Valles Altos in its meat packing plant. Production of animal feeds in 1967 for the follow- ing animals were as follows, in metric tons: cattle, 57,815; horses, 2,170; hogs, 95,391, birds (including poultry), 343,338, and others, 8,988. The feeds industry uses some locally-produced raw materials, such as fish and bone meal, oil cakes, and corn, but imports a considerable amount of alfalfa, poultry grains, soybean meal, vitamins, and other addi- tives. The plant equipment is mostly of U. S. origin. There is a steady, small market for equipment. While the larger mills probably will not engage in any signifi- cant expansion for awhile, some smaller mills proba- bly will have to upgrade their equipment and capaci- ties. The demand for grains and other ingredients for feed mixing is expected to increase steadily and Vene- zuela should continue to represent a significant export market for these commodities. BAKERY PRODUCTS Much of the Venezuelan population still shows a preference for the traditional "arepas," mentioned pre- viously. Bread, rolls, and pastries are produced mainly by numerous small bakeries, although industrial baker- ies are now obtaining an increasing share of the mar- ket. "Holsum" brand bread is now being produced by a subsidiary of the Fuchs Baking Company, while the CADA supermarket chain, owned by the International Basic Economy Corporation, and other smaller firms usually use their own outlets to distribute their bread. By far the greatest percentage of bread is U. S. -style white bread packed in glassine or cellophane. Some European type breads are made by small bakeries. Figures on total investment and labor force are not available because of the high number of small bakeries throughout the country. However, as the preceding in- formation on the milling industry shows, wheat flour production has increased rapidly, which indicates the expansion of the bakery industry. Equipment imports have been steady at over $4 million per year and reached $4.5 million in 1967. The major suppliers of bakery equipment are Italy and West Germany. The popularity of European equipment is probably due to the large proportion of immigrant Italian bakers oper- ating small bakeries. Pastry baking is also done mostly by small bakeries, although CADA's bakery and Pasteleria Vienesa S. A. also offer packaged pastries through their own and other outlets. An important sector of the baking indus- try consists of the 20 biscuit and cracker factories operating in Venezuela. Nabisco La Favorita, a subsid- iary of the National Biscuit Company, in Caracas; Gal- letera El Avila, La Suiza, and Sucra de Jose Puig in Barquisimeto, Maracaibo, and Caracas are other large biscuit bakers. Chocolate-covered biscuits are also made by Savoy Candy, a subsidiary of Beatrice Foods and by La India, a General Foods Corporation affiliate, both in Caracas. All these larger manufacturers offer a wide variety of products in all price ranges up to expensive 10 gift packs. Production of biscuits and crackers, 1965- 67, is given below in metric tons: 1965 1966 1967 Sweet 6,569 8,313 7,963 Salt and soda 4,466 4,788 5,415 There are over 50 pasta factories and their annual production increased to 67,163 metric tons during 1967. Most are small. Larger ones are operated by subsidiaries of CADA, Pillsbury, and Pasteleria Vi- enesa. A very complete line is offered in attractive packaging. SUGAR REFUSING The sugar industry consists of 12 mills with a total investment of over $60 million, and a total employment of 6,000 in the mills and over 25,000 in the fields. The Government, through Centrales Azucareros, a subsidi- ary of the Venezuelan Development Corporation (CVF), operates seven mills and produces close to 50% of the total national output. Production of refined sugar has almost totally replaced that of the traditional brown sugar. Sugar production and exports, 1965-67, in metric tons, were : 1965 1966 1967 Production 340,377 292,146 346,764 Exports* 2,901 16,436 23,050 Venezuelan sugar production during the years 1958 and 1959 dropped to levels which made imports neces- sary. At that time, the Government expanded its sugar development program by investing $3 million for the improvement and modernization of the Government- owned sugar mills and by increasing the sugar fund. The fund provides financing assistance for private producers. The existing sugar mills consequently were enlarged and received modern equipment and controls, and greater emphasis on more efficient exploitation of cane. Several small and uneconomical mills were closed and two new ones built, the largest being the Central Portuguesa in Portuguesa State. This one was inaugu- rated recently and has a capacity for milling 3,000 metric tons of cane a day with built-in facilities to mill twice that amount by 1976. Sales prospects for equipment for the next few years appear to be limited. After the opening of the Portu- guesa mill and conclusion of the modernization plan, installed capacity would appear to be sufficient to ab- sorb the growing demand. The soft drink industry, which uses close to 23 % of total production, the confectionery industry and the bakery industry are the most important industrial con- 4 Includes molasses. sumers. For retail sale, sugar is offered in paper bags and in boxes of lump sugar. It is also sold in small glassine portion-packs for use mainly in restaurants and cafeterias. Sugar distribution is carried out by the Distribuidora Venezolana de Azucares (DVA), an or- ganization of all sugar producers, including the Gov- ernment company. DVA estimates that by 1970, total production will amount to 464,000 tons a year with internal consumption of 357,000 metric tons. CONFECTIONERY INDUSTRY With sugar and cocoa traditionally available locally, the Venezuelan confectionery industry had an early start. "La India," with Swiss investment, was founded in 1861 to produce chocolate. The industry now con- sists of eight large and numerous very small manufac- turers producing many types of chocolate, cocoa pow- der, soft and hard candy, chewing gum, jellies, jams, breakfast drinks, powdered soft drinks, appetizers, and cold cereals. Official statistics are sketchy, but do give an idea of the production volume of the industry (see table 7). The industry is able to supply the local demand for these products, and imports have been negligible. Fur- thermore, the industry is protected by a high tariff. Industry sources estimate that total investment amounts to over $15 million and that approximately 1,200 people are employed. Most of the larger manu- facturers, such as Savoy Candy (Beatrice Food subsidi- ary), La India (General Foods), La Suiza, Fiesta, and Lady, produce a wide variety of sweets. The largest marmalade manufacturers are Industrias Melrose and Pasteleria Vienesa, recently bought by Pepsico, Inc. of New York. Chicle Company is the largest local chewing gum manufacturer. Although the Venezuelan products are considered to be of excellent quality, and are attractively packed, the high price of production so far has limited exports to occasional small orders. The equipment used by the manufacturers is mainly of U. S. and German origin. The market for U. S. equipment still appears to be good, as many firms are still growing and modernizing. For example, Savoy Candy and its subsidiary, Marlon C. A., a party snack manufacturer, recently built a large new plant. Flavors and some packaging material also continue to be imported, but cans, foil, boxes, and most other packaging materials except glassine are of local manufacture. The industry shows great interest in making U. S. candy under license, and U. S. manufac- turers interested in entering this market should first consider licensing or joint ventures. 11 BEVERAGES Soft Drinks. — Helped by the tropical climate, the soft drink industry of Venezuela is growing at a rapid rate. Production increased from about 120 million li- ters in 1950 to 485 million liters in 1965, and 557 million liters in 1967. The number of plants decreased from 80 in 1962 to 73 in 1968 as a result of the construction of larger and more efficient plants by the large manufacturers and the disappearance of a few local brands which did not find a sufficient market. The industry, including its distribution organizations, is re- ported to employ close to 80,000 people. The majority of sales are concentrated on a few highly advertised brands, of which Pepsi Cola (produced by local licen- sees) and Coca Cola (produced by subsidiaries as well as by licensees) are the leaders. Orange Crush and the Italian Chinotto are also popular brands. Some of the syrups are now made locally by Coca Cola, Pepsi Cola, and by a department of Liquid Carbonic de Venezuela, a subsidiary of the U. S. firm of the same name. Distri- bution is very effective and literally covers the entire country. Bottles, crown caps and cans, as well as wooden, cardboard and plastic cases, are of local man- ufacture. Alcoholic Beverages. — The local brewery indus- try is dominated by two companies: Cerveceria Polar C. A., capitalization 50 million bolivares, and Cervec- era Nacional C. A., capitalized at 65 million bolivares. These firms own practically all other breweries in the country, although their own brands are also distrib- uted nationwide. Their production increased from 279 million liters in 1965 to 332 million liters during 1967. The industry has to import almost all of its raw mate- rial and only buys bottles, caps, and cans locally. Canned beer has only a minute share of the market and has not become popular. The industry uses mostly Ger- man equipment and methods, but some U. S. equip- ment and instrumentation has been installed recently. No grapes are grown in Venezuela and wines are produced by imported mashes, musts, and concentrates. No production statistics are available. Vermouths are produced by Cinzano, Martini Rossi, and others. Mon- tesanto, Chianti and other Italian wines are locally prepared but must compete with imported Italian, Chi- lean, and German wines. Champagne is produced by Industrias Pampero, the largest Venezuelan rum dis- tiller. Rum, both aged and white, is the most popular high proof drink and, with "aguardiente", an unrefined, un- aged sugarcane distillate, are the lowest-priced distilled liquors. There are numerous brands. "Cacique", made A filling machine and crowner in operation at Pepsi-Cola bottling plant in Antimano. by Licorerias Unidas, near Barquisimeto (a Seagrams subsidiary), various Pampero brands and Santa Teresa enjoy the greatest sales. While separate consumption statistics for rum are not available, distillation of alco- hol of proof grades customary for both rum and gin (also made by Pampero and Licorerias Unidas) amounted to over 20.2 million liters in 1965, 23.4 mil- lion liters in 1966 and 21.6 million liters during 1967. Gins, vodka, brandy, and cordials of many well- known brand names such as Beefeater's, Gordon's, Hennessy, Martell, Bols, Cointreau, and others are made under license from imported concentrates, fla- vors, or supplied recipes. Licorerias Unidas, Pampero, Santa Teresa, and Duncan, Gilbey, and Matheson de Venezuela are some of the major distillers. Scotch whiskey is favored by most Venezuelans and bourbon imports are very low. Scotch of the Seagram's brand is made by Licorerias Unidas and is the only whiskey produced in Venezuela. Although bourbon and rye whiskeys can enter the country under special tariff concessions granted by the Reciprocal Trade Agree- ment between the United States and Venezuela, imports have been extremely low and sales are mostly to Ameri- cans. No upturn in the local consumption of bourbon or rye is foreseen. 12 Market opportunities for U. S. companies seem to exist mostly in high-speed bottling machinery. EDIBLE OILS A1SD FATS Venezuela's edible oil industry has sufficient capacity to supply the domestic demand for sesame, cottonseed, and coconut oils, but olive oil and peanut oil are being imported. Corn oil production was started during 1967. Production of edible oils (metric tons) has shown gradual increases: 1965 1966 1967 Sesame oil 28,365 32,035 31,578 Cottonseed oil 3,798 4,056 4,528 Coconut oil 644 746 384 There are 10 plants with a total investment of close to $25 million, and roughly 1,500 employees. The larg- est are Juan Ernesto Branger & Cia. (trade mark BRANCA); MAVESA (Vatel) ; Grasas de Valencia (Diana) and Facegra (El Rey), all with plants in Caracas or Valencia. Edible oils are packed in metal containers, and plastic and glass bottles, and are dis- tributed nationwide. While sesame seed production in Venezuela is now sufficient to supply these plants, im- ports of crude cottonseed oil and of copra are still required. Peanut oil production is planned to com- mence within the next 2 years, as large peanut planta- tions are now being established with Government finan- cial assistance. Peanut oil is consumed mainly by the sardine canners, and imports during 1967 amounted to over 5,000 metric tons. No soybean oil is produced, and animal feeds mixers imported 4,600 metric tons during the same year. The industry uses very modern methods and the quality of the locally produced edible oils is generally considered excellent. There are 10 vegetable shortening and margarine producers in Venezuela, of which MAVESA (Procter & Gamble minority participation), in Caracas, is the larg- est. Production statistics, shown below in metric tons, indicate the popularity of these edible fats : 1965 1966 1967 Vegetable shortening 36,313 31,767 32,836 Margarine 9,151 8,845 10,070 Venezuela has traditionally been a hog lard con- sumer, but trends have changed toward edible vegeta- ble oils and fats. Health reasons may have contributed to this change. The industry is protected by high tariffs. Most of the raw material, chemicals, and packaging material are available from local producers. Sales opportunities for U. S. exporters seem to exist primarily for equipment. A great expansion cannot be expected. The industry is reported to be working at far below its installed capac- ity and seems to be able to absorb the market growth. 13 CHAPTER III Tobacco Products The Venezuelan tobacco products industry has suffi- cient capacity to supply the increasing demand for cig- arettes, cigars, and pipe tobacco. There are three ciga- rette manufacturers with a total investment of close to $60 million. They are owned by two companies, Cigar- rera Bigott Sucesores, a subsidiary of the British American Tobacco Company, and Tabacalera Nacional C. A., a Philip Morris subsidiary, with some local capi- tal also invested. This industry directly employs over 2,000 persons and engages heavily in tobacco financing through previous contracting of crops. In addition, collection, storage and curing plants have been in- stalled by the industry in tobacco-growing regions of Venezuela. The equipment is modern in every respect. Cigarette machines are mainly of German manufacture. While cigarette paper is being imported, the industry now uses only locally made filters and packaging mate- rial. A great variety of brands, U. S. and domestic, is being produced, and most are heavily advertised. The cigarette industry is protected against import competi- tion and legal cigarette imports are negligible. How- ever, the industry claims that contraband cigarettes are entering the country at a rate of over 100 million per year, and that this traffic is hurting domestic produ- cers. Nevertheless, production increased considerably after the industry received protection, and is continu- ing to grow, as seen by figures below (in thousands of cigarettes) : 1959 1965 1966 1967 Black 1,076,135 485,081 430,045 407,408 Virginia 3,398,433 9,064,082 9,245,820 9,995,114 These figures also indicate the growing popularity of Virginia-type tobacco. There are still some imports of tobacco for blending purposes, amounting to 1,116 metric tons in 1967. These are mostly oriental types transshipped through the United States. The cigar industry, once primarily a cottage indus- try around the Cumana area, now consists of 18 pro- ducers, of which the cigarette manufacturers or their subsidiaries are the largest. Cigar production increased from 93 million units in 1965 to 102 million units during 1967. Pipe tobacco also is being produced, but statistics are not available. Imports of equipment have recently been around $500,000 per year. Germany has been the main sup- plier. No significant change can be expected in this market picture in the near future. 14 CHAPTER IV Textile and Related Products The textile and clothing industries are two of the oldest and most important in Venezuela. In terms of total value of industrial production, these two indus- tries, combined, rank third behind the petroleum and food industries. Total production value during 1965 amounted to $257 million; in 1966, to $262 million, and during 1967, to $273 million. The first weaving machines were installed in 1850. By 1945 the industry had grown to 10 mills employing 4,000 people. Growth continued to be rapid during the fifties but by 1958 the industry was suffering from four major adverse situations: consumer preference for for- eign goods; lack of Government protection; obsolete equipment; and the necessity of having to import most of the raw material. These factors, combined with the high cost of labor, resulted in high prices, further dam- aging the industry's marketing possibilities. Beginning in 1958, the Government initiated a policy of intensive encouragement of this sector of the economy. During the subsequent 5-year period, more Government credit was extended through the Corpora- cion Venezolana de Fomento to this industry than to any other. As the installation of more modern machines started to show results by production of more and better tex- tiles at no increase in retail price, a series of tariff increases, import licensing requirements and quantita- tive import restrictions were imposed on those products which competed with domestic textiles. During the years 1958-61, the textile industry increased its produc- tion by 50% and doubled the number of workers. Di- versification also became greater and new types of fab- rics and fibers were added to the companies' output. As a result of this increase, the textile industry now sup- plies over 90% of the country's textile requirements. The industry now consists of 78 primary textile mills plus another 70 converters, texturizers, and knitting mills, employing over 17,000 workers and having an estimated total investment of over $155 million. In addition, the estimated 500 clothing manufacturers — most of them quite small — employ another 30,000 per- sons and have an investment of over $50 million. Equipment in the primary textile mills in recent years is shown in table 8. No figures are available on equipment installed in knitting mills. Estimates range around 800 knitting ma- chines. However, modernization of the industry has caused it to install the most up-to-date equipment in 15 Latin America. Recent-model Jacquard, links-links, tu- bular, flat, and double-knit machines have been in- stalled, and there are 44 Raschel and 228 Ketty-Ketty machines in the country. The auxiliary industries have attempted to keep up with the steadily increasing requirements of the textile industry. Apart from texturization, the supporting in- dustry can now supply cardboard and plastic bobbins and spools, acids, silicates, caustic soda, formaldehyde, detergents, dressing and bleaching agents, starches, carboxy-methyl-cellulose, and various resins and poly- mers. Thus, wrinkle-proof and wash-and-wear process- ing is being done, utilizing locally-produced chemicals. The general trend towards reducing costs has re- sulted in some mergers and in the construction of spa- cious, modern plants with excellent layouts, efficient quality-control laboratories, climate control, and high- speed materials handling equipment. Thus, the industry hopes to be able to compete in an eventual common market in spite of its labor costs, which are the highest in Latin America, as shown in table 9. The general outlook for the United States appears to be good for exports of textile machinery. Venezuelan imports during 1967 amounted to $10,989,000, of which the United States supplied $3,685,000, with Ger- many being the second most important supplier. Fur- ther import restrictions on textiles, fibers, yarns, and clothing can be expected, and textile imports will be replaced by more machinery and raw material imports. COTTON TEXTILES Most of the primary textile mills produce cotton fab- rics, primarily, since these are the most popular and inexpensive textile products. Production has shown constant increases over the years, as seen for 1966-67 in table 10. The cotton industry is able to obtain an increasing percentage of its raw material from local cotton grow- ers. Production during 1967 amounted to 44,023 metric tons of fiber lengths up to iy 16 inches. Longer fiber lengths are still being imported, mainly from Peru and the Sudan. Some of the most important mills are Telares Los Andes, Telares Palo Grande, both in Caracas; Telmar- tex (Johnathan Logan subsidiary, resulting from a merger of the former Texfin and Telares Maracay), in Maracay; and Telares Branger, in Valencia. J. P. Coats & Co. operates a sewing thread mill near San Joaquin. Hilanderias Venezuela, which recently bought Telares Branger to form the largest Venezuelan spinning and weaving combine, and Hilanderias Cumana are two of the largest spinning mills. SYNTHETICS Venezuela's synthetic textile fiber industry consists of several American companies, and produces a consid- erable amount of artificial and synthetic fibers- and yarns. The industry is modern in every aspect. Produc- tion during 1967 amounted to the following: Acetate filaments 6,952,800 pounds Short fiber acetate 336,200 pounds Cigarette tow 2,422,200 pounds Nylon 6 filaments 4,869,200 pounds Polyester fiber 3,557,700 pounds The industry at present is using almost all its in- stalled capacity with the exception of the polyester plants, which are using less than half their total built-in capacity of 8 million pounds per year. The most important plants are Celanese Venezolana in Valencia, producing acetate, rayon, cigarette tow, nylon-6, and polyester fiber; Sudamtex de Venezuela and its subsidiaries, Sudalon and Sudaseta, producing the same type of fibers in Maracay, in Venezuela's largest synthetics spinning and weaving mill; and Tel- martex, in Maracay, mentioned under Cotton Textiles, which is the newest polyester producer. During 1967 the synthetics weaving mills produced 37 million meters of fabrics and 4 million meters of synthetics fabrics mixed with cotton, while knitting mills manufactured 886 metric tons of knit fabrics from man-made fiber yarns. There are reportedly seven texturization plants producing texturized and stretch nylon. WOOLEN TEXTILES Production of worsteds started in 1963, mainly by Textilana, in Caracas. The fabrics produced are report- edly of excellent quality, with emphasis on tropical lightweights. The same mill started wool spinning dur- ing 1966. Production in 1967 amounted to 485,000 meters of fabrics containing less than 30% wool and 2,442,000 meters with over 30% wool content. CARPETS Venezuela has four carpet mills with a total invested capital of roughly $1 million, and several hundred em- ployees. This industry early in its existence received protection against imports, and also received further impetus with the start-up of production of automobile 16 carpeting for local assemblers. The output includes nylon, cotton and woolen rugs, carpets, mats, and auto- mobile carpeting. Sisal rugs are also popular. OTHER TEXTILE PRODUCTS Two companies weave linen but there is no linen spinning. There are five lace and embroidery mills, jointly able to satisfy domestic requirements. A number of small weavers of narrow fabrics, labels, and elastics exist. They have sufficient installed capac- ity to supply the market and are protected by high duties. Textilera Libertador, in Caracas, is the only Venezuelan weaver of curtains and upholstery fabrics. CLOTHING Venezuela is estimated to have over 500 clothing manufacturers, most of which have fewer than 50 em- ployees. Some of the larger men's wear manufacturers are Confecciones HRH, which also produces under li- cense, "Jockey" brand men's underwear and "Jantzen" bathing suits, Trajes Wendell, Monaco, Larry's, and a few others. Selecciones Selemar and Tropicana are two of the larger ladies' wear manufacturers. Ladies' under- wear of well-known U. S. brands is being manufac- tured by Roth de Venezuela (Kaiser), Exquisite Form Brassiere de Venezuela, Textilera Gran Colombia, and Van Raalte, among others. Men's shirts manufacturers include Vesta C. A. (Van Heusen), Manhattan de Ven- ezuela, and Industrias Jatu (Arrow), in Maracaibo. Several plants manufacture neckties, handkerchiefs, bathing suits, and sportswear. The industry is protected by extremely high tariffs and/or import licensing requirements and is able to satisfy almost all local demand for outer and under- wear. HARD FIBER PRODUCTS Venezuela is self-sufficient in the production of hard fiber goods, using sisal which is grown locally in ade- quate amounts. The industry began production in 1940, with one bag and one rope factory, and is now centered in the principal sisal growing area around Barquisi- meto, although one large factory is located in Caracas. Rope up to 3% inches in diameter is being produced at an average rate of 300 tons a month. The quality is considered good and occasional exports have been made, including sales to the United States Navy dur- Sisal being laid out to dry in the sun. The principal growing area is around Barquisimeto. Local production is adequate to support the nation's output of hard fiber goods. Venezuela has become self-supporting in these goods over the past 30 years. 17 ing the Korean War. The principal manufacturers are small quantity of cotton sacks. All manufacturers Dougherty Cordage Mills, in Caracas, and Sisalara and except one use flat knitting mills. Sisaltex, both in the Barquisimeto area. All these mills The industry reportedly has much old machinery also produce nylon rope and nylon and sisal fishing which eventually will have to be replaced. This replace- nets. Sacks are manufactured by these firms and by a ment market, in addition to the market being created number of small manufacturers. Roughly 8.5 million by necessary expansion and diversification, should pro- sisal sacks were produced during 1967, along with a vide sales potential to U. S. manufacturers of such equipment. 18 CHAPTER Chemicals and Chemical Products The Venezuelan chemical industry is rather new and still in a phase of rapid development. The real begin- ning of the industry was in 1956 when the Instituto Venezolano de la Petroquimica (IVP) started construc- tion of a large Government-owned complex using natu- ral gas as the major raw material to produce acids and fertilizers. Today, the IVP plant at Moron is still the only major basic chemicals plant and is effectively serving as a base for further development, producing a number of basic chemcials used by the privately-owned chemical and chemical products industries as raw ma- terials. Investment activity of the private sector has increased in recent years and a number of privately- owned plants have initiated production of those in- dustrial chemicals whose domestic consumption war- rants the heavy investments involved. The limited size of the domestic market for basic chemicals will not support large-scale production of most of them. Consequently the chemical industry, which has been encouraged by the Government to sup- ply the local market under the protection of high tariffs and import licensing requirements, is generally a high- cost, high-price industry. The primary future development will be in the Gov- ernment or the joint sector, mainly by the enlargement of the petrochemical industries. Although IVP is still producing at high cost, its enlargement program in- cludes the construction of plants (ethylene, polyethyl- ene, mono-and poly-vinyl chloride, poli-isoprene, caus- tic soda, ammonia, urea, isopropanol, and propilene oxide) which will be of economical size but will de- pend to a large degree on exports. This is one of the reasons why IVP is accepting large foreign companies as partners in projects related to the petrochemical complex which will be built at El Tablazo at the edge of Lake Maracaibo. IVP feels that, apart from the contribution of capital and technical know-how, these foreign partners will contribute their marketing knowl- edge and access to parts of their own markets. The total value of production of the chemical and chemical products industry rose from $113 million in 1960 to $187 million in 1965 and to $206 million during 1967. The industry is estimated to have close to 7,000 employees and total investment in fixed assets is estimated to be over $300 million. Investment oppor- tunities continue to be excellent. Equipment purchases will be high for many years to come and the industry will require, in addition to money and hardware, a 19 Model of a $5.7 million earth satellite communications center which is to be built in Venezuela by General Tele- phone & Electronics International Incorporated. considerable amount of technical assistance. Thus, joint ventures, licensing arrangements, and turnkey plant sales should constitute additional opportunities for U. S. firms. THE PRIVATE SECTOR Due to the high investment required in relation to the small market, the private sector has not had its greatest development in the manufacture of basic chem- icals, but rather in that of chemical products. The pri- vately-owned chemical and chemical products industry will be described according to the major product groups : Acids. — Quimica Tapa Tapa near Maracay is the only privately owned acids manufacturer. The small plant produces daily 3 tons of hydrochloric acid, 250 tons of sulfuric acid, 10 tons of phosphoric acid, 186 tons of nitric acid at 5% , and 30 tons of nitric acid at 98%. Industrial Gases. — In 1967, eight companies with 21 plants produced 4,391,713 cubic meters of in- dustrial and medicinal oxygen, 648,368 kilograms of acetylene, and 5,713,097 kilograms of carbon dioxide and dry ice. In addition, unknown amounts of nitrous oxygen and some hydrogen were produced. Major companies are AG A (Swedish capital, Gases Industri- als de Venezuela (Chemetron Corporation), Liquid Carbonic de Venezuela (subsidiary of the U. S. firm Liquid Carbonic), all in Caracas, and Oxigeno Cara- bobo, in Valencia. These firms supply the entire domes- tic requirement for these gases. Alcohols. — Ethyl alcohol is distilled from sugar cane by Destileria Yaracuy, in Yaracuy State, and by Licorerias Unidas, near Barquisimeto. Production dur- ing 1967 in the 114 to 196 proof range amounted to 17,200,000 liters. Some grain and potato alcohol is now being distilled for use by the pharmaceutical and cosmetics industries. Isopropyl alcohol is available from the Creole and Shell refineries. Methyl alcohol is not being produced. Industria Venezolana de Alcoholes Sulfonados C. A., in Caracas, is producing unknown quantities of sulfonated alcohols and greases. Synthetic Resins. — An increasing variety of syn- thetic resins, mainly in emulsion or solution form, is being manufactured in Venezuela, with the range now including urea and phenol formaldehyde, acrylics, po- lyvinyl acetate, melamin resins, standard alkyds, ester gums, epoxy esters, epoxy oils, maleics, fumarics and resinated oils, and epoxy varnishes. The major manu- facturer of these resins is Resimcn C. A., in Valencia, a subsidiary of the Montana group of firms in Caracas, (described under "Paints and Printing Inks," below), 20 with 10 reactors and 1,200 tons per month capacity. Venezolana de Resinas C. A., near Maracay, a subsidi- ary of Ashland Chemical Co. and of Tenneco in the United States, with a 2-reactor plant of 450 tons monthly capacity, produces monomer and polymer plasticizers, alkyd and epoxy resins, modified resins, phenol, iso-phthalic polyesters, poly-urethane resins and butylated resins for the textile, lumber, and paper industries. Total investment in the synthetic resins in- dustry is estimated at $12 million. Quimicas Leros, in Caracas, operates a small one-re- actor plant with a capacity of 120 tons per month under technical supervision of the Borden Company to manu- facture formaldehyde, urea formaldehyde, phenolic res- ins, emulsions, glues, and adhesives. The paint plants of Du Pont, Sherwin-Williams, and Pinco-Pittsburgh operate small alkyd plants for their own consumption. The adhesives plant of Couttenye & Hij os in Caracas has a 3-reactor installation for the production of polyvinyl acetate and resin/emulsions with a capacity of 30 tons per day, and is installing three more reactors which are scheduled to be in place by the end of the year. A subsidiary of the German firm Farbwerke Hoechst, near Maracay, produces carboxy-methyl-cellu- lose, a textile sizing. Snythetic resins in granular or powder form for plastics molding are still being imported. The construc- tion of a phthalic anhydride plant is under way by Oxidaciones Organicas C. A., in Valencia. Glycerine. — Las Llaves S. A., in Puerto Cabello, a subsidiary of the MAVESA margarine and edible oil producer in Caracas, is the only Venezuelan producer of glycerine. The plant has an installed capacity of 60 metric tons per month, sufficient for local consumption. Fatty Acids and Greases. — This industry recently received protection against imports. Borth C. A., a sub- sidiary of Juan Ernesto Branger & Cia in Caracas, an edible oil manufacturer, is one of the largest Venezue- lan producers of stearic and oleic acids, fatty acids, and tallow oils. The afore-mentioned Industria Venezo- lana de Alcoholes Sulfonatos also produces sulfonated greases and oils, and Sulfon Chemical manufactures fatty acids and greases. Inorganic Chemicals. — The range of inorganic chemicals produced in Venezuela is small. Lead oxide of the Pb 2 type of storage battery manufacture is being produced by four plants with a reported capacity of 5,000 pounds per hour, sufficient for local require- ments. Carbon black is being produced from crude oil by United Carbon de Venezuela in Valencia. The plant produces five types of carbon black at a rate of 14 million pounds annually for the tire and ink industries. Deltaquim, in Caracas, a rather new firm, produces copper, iron and sodium sulfate, ammonia chloride, and iron oxide. Silicates for the detergent, glass, and refractory industries are being produced by Silicatos de Venezuela near Caracas (10 tons a day), and silica powder is manufactured by Silica Nacional C. A., near Valencia, at a rate of 3 tons a day. Salt (sodium chloride) is obtained from seawater evaporation in basins along Venezuela's seacoast. Total production during 1967 amounted to 171,000 metric tons. While salt production is a government monopoly and was once controlled by the Ministry of Finance, the entire industry was recently turned over to IVP. Refining and packing is done by private c6mpanies. Calcium hydroxide and calcium oxide are being pro- duced by four small firms, reportedly in amounts suffi- cient to meet domestic demand. Zinc oxides for pigment and at USP grade are being produced by the Montana Group of companies. THE GOVERNMENT SECTOR IVP, at its original plant at Moron, is producing a number of chemical products with installed capacities as shown in table 11. The 16,300 barrels-per-day crude oil refinery in the Moron complex was transferred to the Corporacion Venezolana de Petroleo (CVP), the Government-owned oil company. It produces, in addition to some gasoline, 17 barrels of benzene, 21 barrels of toluene, and 29 barrels of xylene per day. IVP's civil explosives plant, also at Moron, produces 23,500 metric tons of dynamite a year plus 5,800 tons of ammonite, 2,300 tons of ammogelatine, and 2,000 tons of primers. A new sulphuric acid plant has gone on stream at Moron and the phosphoric acid plant is to be enlarged in order to increase the fertilizer capacity. Quimicas Venoco C. A., in Valencia, a joint venture between IVP, C. A. Nacional de Grasas Lubricantes (a privately-owned lubricating grease manufacturer), Philips Investment Corporation, and an investment company owned by Shell, was recently inaugurated and is producing dodecyl-benzene at a rate of 15,000 tons per year. The investment in this plant amounted to $3 million. IVP has major expansion plans. The largest complex of new IVP plants will go up in El Tablazo on the entrance to Lake Maracaibo. The first major plant will be that of Nitroven, to produce 1,800 metric tons of 21 ammonia and 1,400 tons of urea daily. This plant, scheduled for completion in late 1970, is a joint ven- ture between IVP and International Investment (IDI), a U. S. — European consortium. Unicar Petroquimica C. A. was founded in 1967 as a joint venture between IVP and Union Carbide for the construction and operation of a $30 million plant in El Tablazo to produce 50,000 metric tons per year of low density polyethylene. About 80% of the output will be exported. El Tablazo's nucleus will be an $11 million cracking plant, wholly-owned by IVP, which will produce 150,000 tons of ethylene annually, reportedly enough to supply 2.5% of the world demand for this gas. Also, 85,000 tons per year of propylene will be produced. PETROLEUM INDUSTRY Although the petroleum industry is not generally considered a manufacturing industry, it is described here briefly, in view of its importance to Venezuela's industrial and general economic well-being. Petroleum drill about to be set on Lake Maracaibo. During 1968, Venezuela ranked as the world's third largest oil producer and the world's largest exporter. Production during that year averaged 3,604,756 bar- rels per day, of which 1,349,200 barrels were refined. Exports amounted to 3,368,461 barrels per day, or 93.4% of production. Roughly 72% of the total exports consisted of crude. There are 14 refineries with capac- ity to process 1,350,000 barrels of crude per day. The largest refineries are located at Amuay and Punta Cardon. A breakdown of exports during 1967 (table 12) shows the types of refinery products which Venezuela places on the world market. Proved reserves presently are calculated at about 15.7 billion barrels, or enough for 13 years at the present rate of production. However, there has been relatively little exploration activity recently and actual reserves are probably much higher. The industry in- vested 571 million bolivares during 1967. Investments for 1969 will probably be much higher due to the construction of two desulphurization plants. Production of natural gas amounted to 45.8 billion cubic meters during 1967 of which 28.1 billion cubic meters were utilized as fuel or by petrochemical instal- lations. The gas distribution network is being expanded by CVP to reach most industrial and residential areas in cities. In addition to normal refinery products, Venezuelan refineries produce paraffin, naphtha, and phenol ex- tracts. Lubricating greases are produced by C. A. Na- cional de Grasas Lubricantes in Valencia, while Shell, Creole, and Mobil produce lubricating oils. Among the largest U. S. oil companies operating in Venezuela are Creole Petroeum Corporation (Standard Oil of New Jersey), Mobil Oil Company (Socony Mobil Company), and Mene Grande Oil Company (Gulf Oil Company). The only non-U. S. oil company active in Venezuela is Compania Shell de Venezuela. CHEMICAL PRODUCTS Paints and Printing Inks.- — Venezuela is virtually self-sufficient in the manufacture of paints. Imports consist of some specialty paints, mainly for industrial purposes, and of some spray paints, although aerosol packing of paints is also done in the country. The industry now consists of 13 manufacturers, of which only five can be considered large. It is estimated that the industry has a total investment of over $20 million, and close to 2,000 employees. Production has shown gradual increases, as shown in table 13. Oil base paints, rubber base paints, acrylic and 22 acro-vinylic paints, enamels, automobile lacquers, var- nishes, and marine and anti-corrosion paints are being produced. The raw material has to be almost entirely imported. Pigment imports during 1967 amounted to 6,739 metric tons, of which the United States supplied 734 tons. Besides the packaging material, synthetic resin in- gredients are almost the only locally produced raw ma- terials. Montana Fabrica de Pintura is the largest Ven- ezuelan paint manufacturer. The Montana group, whose nucleus was the paint company, now consists of a number of enterprises engaged in printing, manufac- ture of paint brushes, printing ink, rotogravure cylin- ders, and synthetic resins. Other large manufacturers are Du Pont de Venezuela (subsidiary of the U. S. company), Sherwin-Williams Venezolana (licensee), and Pinco- Pittsburgh (joint venture with Pittsburgh Plate Glass Company). The quality of the Venezuelan- made paint is generally considered excellent. Printing inks are made by four manufacturers and one mixer. A full line of inks for general printing, flexography, textiles, metal lithography, and plastics is produced. Installed capacity is reported to be close to 1,000 metric tons per year with annual consumption averaging 600 tons. Sun Chemical's subsidiary, Fuchs & Lang Sun Chemical de Venezuela, is the largest man- ufacturer, with Interchemical and J. M. Huber, both subsidiaries of the U. S. companies, and Grafts C. A., another member of the Montana group, being the other major manufacturers. Tintas Crescent is a small mixer. All firms operate entirely with imported raw materials. Laboratories in all plants are able to prepare formulas and color tones for special customer requirements. No writing inks are presently being produced in Vene- zuela. Cosmetics and Toilet Preparations. — For all practical purposes, Venezuela is self-sufficient in the manufacture of these products. Practically all famous brands are represented by subsidiaries or licensees. The industry is estimated to consist of close to 50 firms with 2,500 employees and is reported to have $20 mil- lion in fixed assets. Its products include perfumes and colognes, lotions, talcs, cosmetic products, nail pol- ishes, shampoos, and toilet soaps. Avon Cosmetics, Hel- ena Rubinstein, Helen Curtis, Max Factor, Breck, and Shulton are some of the major U. S. manufacturers. Products of Wella and 4711 of Germany and Christian Dior and Chanel of France are also made in Venezuela. A local subsidiary of Johnson & Johnson and a licensee of Mennen are major producers of baby care products. The industry has to import practically all its raw materials, and purchases locally only alcohol, starches, palm oil, and most containers. High import duties pro- tect the industry, and imports now consist primarily of bulk cosmetics and certain ingredients for local pro- cessing. Future opportunities for U. S. companies exist mainly in semi-finished materials, raw materials, and equipment. U. S. manufacturers of cosmetics desirous of entering the Venezuelan market will have to estab- lish facilities in the country or work with a licensee. Cleaning and Maintenance Preparations. — A growing variety of such products are being made in Venezuela. The Venezuelan detergent industry is con- trolled by three U. S. firms, Colgate-Palmolive, in Val- encia, Procter & Gamble, in Caracas, and Wyandotte de Venezuela, in Guarenas. While the first two make full lines of household detergents and their popular brands of toilet products and soaps, Wyandotte specializes in industrial detergents and controlled foam detergents. Small local companies, all of them employing the dry mix process, are Quimicas Caracas, Laboratorio Quim- ico Industria Mabo's, and Tecnoquim, the latter also a subsidiary of a U. S. firm (Diversey Corporation). Production of detergents amounted to 31,620 metric tons during 1967. The industry obtains caustic soda and some silicates locally and soon will be able to obtain dodecyl benezene from the new Quimicas Venoco plant near Maracay. Toilet and laundry soaps are being made by close to 20 manufacturers, with Procter & Gamble, Lever S. A., and Colgate-Palmolive being the market leaders for toilet soaps. The most important laundry soap producer is Las Llaves S. A., in Puerto Cabello (also the only Venezuelan glycerine manufacturer). Production of soaps amounted to 26,137 metric tons during 1967. The soap industry imports some of its raw material, but also is able to buy increasing amounts of animal greases from domestic slaughterhouses. Floor waxes are made by 12 smaller firms, which produced 3,185 metric tons during 1967. S. C. Johnson & Sons is the major American firm making waxes in Venezuela. Automobile polishes and waxes are also made by Dupont de Venezuela. Furniture polishes, glass cleaners, oven cleaners, scouring powders, and similar household cleaning products are made by a number of local firms, some of which are Productos Cruz Verde, Zeralac, Industrias Superbrillo, and Atlan- tis Venezolana. Industrial maintenance compounds are made by Na- tional Chemsearch, Comercial Numara, Sintesia, and Nalco de Venezuela, which also makes water treatment compounds. Production statistics are not available. 23 Pharmaceutical Products. — Venezuela's pharma- ceutical industry grew rapidly during the years 1960- 67, aided considerably by import restrictions designed to protect it. While imports of medicines amounted to $29 million in 1960, they were only $20 million in 1967, consisting to a large degree of bulk pharmaceuti- cals for local formulation. The value of domestic pro- duction has passed the $45 million mark. The industry, now consisting of approximately 80 companies with a total investment of over $100 million and total employ- ment of over 4,000, claims to supply the market with 85%' of all medicines by volume and over 75% by variety. A considerable range of local products is pro- tected against competition from imports, especially vi- tamin products, antihistamines, pectorals, and analge- sic, antipyretic, antidiarrheal, and antianemic products. The industry basically formulates and packs, al- though there is a growing variety of locally developed patent medicines. However, in almost all cases these products are based on modern concepts of chemo-ther- apy. As there is no local manufacture of fine or medici- nal chemicals, almost all the raw materials are being imported in semi-finished or bulk form. Starch, sugar, alcohol, and isopropyl alcohol are almost the only lo- cally available ingredients. None of the manufacturers uses a chemical reaction in the manufacturing process. The pharmaceutical industry uses modern mixing and packaging methods, with equipment in most cases being small but highly flexible. A considerable amount of German equipment is being used, even by U. S. subsidiaries, as available American-made equipment usually is of too high a production volume for Vene- zuelan market conditions. Standards of hygiene are high and packaging and presentation are equal to world standards. Quality checks are frequently made by the Ministry of Health and each company is re- quired by law to have a quality control laboratory staffed by a chemist or pharmacist. Each product, each form, and each concentration of a product has to be registered with the health authorities before it can be placed on the market, and the Ministry not only consi- ders the chemcial consistency but also requires proof (research reports, literature, etc.) of the product's effectiveness. Retail Pharmaceutical prices have been controlled since 1968. These controls fix a mark-up of 30% to retailers and 14% to wholesalers. The prices are fixed on the basis of information supplied by the manufac- turer, taking into consideration the price levels on which similar products are offered on the market. Drug prices are generally lower than in the United States. Drugs and narcotics control is strict and all drug handlers are subject to unannounced spot checks and inventory controls by Government inspectors. Pharmaceutical products are not patentable in Vene- zuela, only the processes for their manufacture. Trade names can be registered and are protected. Most of the larger pharmaceutical manufacturers are subsidiaries of foreign firms. Some U. S. companies with plants in Venezuela are Parke-Davis, Schering, Eli Lilly, Abott, Sydney Ross, Winthrop, Wyeth, and by local licensees. From Europe, Hoechst, Merck, Bayer, Ciba, Hoffman-La-Roche, and Sandoz are some of the better known laboratories. Several locally owned pharmaceutical manufacturers also have reached some importance on the market : Laboratories Belloso in Ma- racaibo; Laboratories Rojas Bravo in Valencia; and Laboratories Behrens, Quinac, Vita, Palenzona and Mayer Productos Terapeuticos, in Caracas. Behrens is an important producer of snake bite serums. Serums and vaccines for veterinary application are being pro- duced by Laboratories Asociados in Maracay and by Laboratorio Biologico & de Irradiacion in Caracas. The period of greatest expansion of the pharmaceuti- cal industry in Venezuela seems to be over, so that export opportunities for U. S. companies exist mainly in equipment for replacement, enlargement, and mod- ernization and in raw materials and semi-finished prod- ucts. Local manufacture of antibiotics, and of such basic ingredients as salicylic acid, citric acid, hydrox- ides, vaseline, mineral oil and others has been studied, but probably will not be realized in the foreseeable future due to the small market for each given product. Surgical dressings and bandaging material also are being manufactured in sufficient quantities to cover the demand. S. C. Johnson & Sons, Laboratories Vargas, Steritex, and INCA are some of the more important manufacturers of sterilized absorbent cotton, adhesive bandages, and dressings. Other Chemical Manufactures. — Glues and ad- hesives are manufactured by a number of Venezuelan firms, among which Couttenye e Hijos, Ahesivos Na- cionales, Industrias Leros, and Adhesivos y Gomas Na- cionales are the largest. This sector of the industry reportedly formulates several hundred types of adhe- sives for household and industrial use. Its 1967 produc- tion was estimated at 1,200 metric tons. However, close to $500,000 of glues were imported during 1967. There is one manufacturer of matches, Fosforera Venezolana C. A., in Caracas. This plant has a labor force of 250 and a capitalization of $3.3 million. Its output during 1967 amounted to 14.7 billion wax paper matches. A second company was recently established and is scheduled to start operations late in 1970. 24 Subsidiaries of the Liquid Carbonic Corporation and of the Diversey Corporation, among others, produce flavors and essences for the food and beverage indus- tries, but the greater part of the country's requirements for these products is still being imported. Pesticides are formulated in Venezuela by a number of companies using imported toxic ingredients. Shell Quimica, Real Kill de Venezuela, Bayer of Germany, Insecticidas Mundiales, and Laboratorios Belloso are some of the more important formulators of pesticides. Insect-repellent smoking coils are also being produced by Osiris, Caracol and others. Laboratorios Asociados, in Maracay, is the only producer of worm killers. Resi- mon, in Valencia, produces certain herbicides. At least 20 firms prepare household and industrial disinfectants. All of them are formulators. Most of the products are made on the basis of pine oils, phenol, alcohol, creoline, chlorine, or sodium hydroxide (lye). Important firms are Laboratorios Belloso, in Mara- caibo, Productos Cruz Verde, Alcopuro, Laboratorio Quimico Industrial Mabo's, and Tecnoquim. The in- dustry uses locally produced alcohol, chlorine, caustic soda, and phenol extracts; it packs its products in netal, glass, or plastic containers of local manufacture. Pine oil is imported from the United States, Finland, and Canada. Household bleaches and bleaching agents for the tex- tile and laundry industries are made by Quimicas Caracas, Tempus, and La Princesa, to name the most important manufacturers. Nalco de Venezuela C. A. formulates water and crude oil treatment compounds. Roofing, wafer- proofing and anti-resonance compounds are made by Cindu de Venezuela and by Industria de Productos Asfalticos IPA in Caracas. Frenos Hidraulicos de Ven- ezuela S. A. and Creole Petroleum Corporation make hydraulic transmission and brake fluids from locally- produced glycerine and imported additives. Venezuela has the capacity to produce sufficient quantities of edible and inedible starches and dextrin. Central Yuquera El Pao (Yucca starch) and Alfonzo Rivas & Cia. and Remavenca (both cornstarch) are the most important producers of edible starches. Tem- pus C. A. and Almidones Industrials Nacionales C. A. produce laundry and textile industry starches. Produc- tion during 1967 amounted to 3,485 metric tons. There are still some imports and the industry is asking for further protection. Iron mines in operation at Cerro Bolivar. Much of the country's iron ore is shipped to users in the United States. 25 PLASTIC PRODUCTS Venezuela's plastics industry has undergone extraor- dinary development during recent years. While in the late fifties the industry consisted of not more than 40 small molders, the number of firms is now estimated at over 200, some of which can be considered large. The importance of the industry is illustrated by the fact that it contributes somewhat over 5% of the total man- ufacturing industry production. Investment is estimated at $20 million and employment close to 2,000. The value of production is estimated by various sources to have reached $40 million, or 80% of total domestic consumption of molded plastic products. The industry produces consumer goods, household articles, toys, novelties, industrial goods, containers, laminates, artificial leather, and many other items. While most companies have no more than 4 or 5 ma- chines, there are several companies which perform the whole range of extrusion, blow-molding, and injection molding and have 20 or more machines. Most compa- nies are very diversified and manufacture a large vari- ety of articles in order to utilize their equipment fully. The entire supply of basic resins is imported. Total thermoplastic and thermosetting resin imports amounted to 29,863 metric tons in 1965 and to 39,459 metric tons in 1967. Statistics on production by article are not available. However, the industry has received complete protection by import restrictions in the form of high duties and/or import licensing requirements. There is little foreign capital in the plastics industry. W. R. Grace operates two plants manufacturing artifi- cial leather for upholstery (especially for automobiles) and decorative laminates and sheets. American Cyanamid produces its "Formica" laminates through a subisdiary. Some of the larger Venezuelan-owned com panies are Topoplast (injection and blow-molding) Hojafan and Polyplastic de Venezuela (film extru ders), Envases Plasticos Venezolanos (containers) Plasticos Victoria (blow-molding), Ampolven (phar maceuticals containers), Tubenplast (PVC tubing) and Tupla (PVC (valves and connections). In the early stages of the industry, Italian machines were the main ones used because many owners of the small companies were of Italian origin. In recent years, however, a considerable volume of German and U. S. equipment has been imported. Very recently, according to industry sources, German machines seem to have gained preference because of their better delivery terms and prices. However, large and high-speed machines for mass production of certain items apparently still come from the United States. Because the mold-making firms in Venezuela are small and few, there is consider- able interest within the industry in importing molds. 26 CHAPTER VI Wood, Paper, and Their Products WOOD PRODUCTS The production and consumption of forest products in Venezuela is low despite the nation's extensive forest resources, but there is an active Government and indus- try interest in changing this situation. One of the prob- lems in bringing about efficient exploitation is the fact that Venezuelan forests, in most areas, consist of a mixture of a great many species of trees — of which only a few are of commercial importance — mixed in with thick tropical underbrush. Other problems which have been cited include com- plicated Government regulations on exploitation, a scarcity of technical assistance applied to forest cultiva- tion, the relatively small market for lumber, and a shortage of credit for forest and lumber operations. Furthermore, Venezuela's most extensive forest regions are .-far from populated or industrial areas and there- fore lack good highways. Although there are a number of large and well-run firms in lumber production, most of the firms in the industry are small operations which are inadequately financed, poorly equipped, and lacking in technical know-how. Consequently, there is considerable destruc- tion and loss. Most lumber is air-dried during the dry seasons, frequently rendering it inadequate for further use except in construction, and consistency of quality is haphazard. The total value of lumber production during 1967 is given as $38 million by Government sources. Recent production of lumber is shown in table 14. Total employment in the lumber industry is esti- mated at 5,000 to 6,000 workers, mostly seasonal. There are some 110 sawmills. The major consumers of lumber in Venezuela are the construction and furniture industries; other consumers are box makers, plywood and chipboard plants, and small carpentry shops mak- ing prefabricated building items, such as doors, win- dow frames, parquetry, and wall paneling. Tablopan is the largest particle board plant and Rafael Viso y Cia., the largest plywood manufacturer. Imports of lumber are small, as there is an import licensing requirement, and ordinarily licenses are granted only for decorative and expensive woods. The Government presently is promoting the use of local species such as mangle and divi-divi for the pro- duction of tanning extracts. These species are abundant 27 and it is hoped that sufficient quantities of extracts can be obtained to allow exports. There is no production of wood pulp in Venezuela. However, the Government is considering, as a joint venture with a number of local paper mills, the con- struction of a 40,000-ton-per-year pulp mill. Furniture. — Venezuela's furniture industry has de- veloped to such a degree that it is now able to supply the country's entire requirement of wooden household and office furniture with reasonably priced products of good quality. The industry consists of numerous small enterprises and a few large industrial plants such as AVELCA in Caracas, reportedly the largest furniture manufacturer in South America, VEMATEC, owned jointly by Sears Roebuck de Venezuela and Sear's em- ployees, and Muebles Azpurua. Because of the great number of establishments, there are no reliable statis- tics on investment and employment. Estimates range around $60 million in fixed assets, and 20,000 employ- ees. The trend is toward a smaller number of larger plants, but small producers of high-cost, stylish furni- ture and those making the crudest and lowest-priced furniture will probably always have a market enabling them to exist. The total value of production of the furniture indus- try is estimated by the Government at $90 million, compared to $79 million during 1965. The industry relies almost entirely on locally grown woods, espe- cially mahogany, cedars, and several tropical species of medium hard woods. Locally produced upholstery ma- terial, pile fabrics, springs, paints, and varnishes are used, but much of the hardware is imported. The industry holds a very popular annual exposition which has helped sales considerably and which has resulted in some exports. High duties protect the indus- try effectively and imports of wooden furniture are negligible. Equipment imports were $3.2 million during 1967, of which the United States supplied roughly 15%. West Germany was the largest supplier. Opportunities for sales to the furniture industry continue to be good, as many small firms are growing and require new and larger equipment. PAPER AND PAPER PRODUCTS Venezuela's paper industry has continued its gradual growth and diversification. The industry now consists of 13 primary paper and board mills with a total of 23 Fourdrinier and cylinder machines. Its total capac- ity is 800 metric tons per day, or 280,000 metric tons per year (24 hour capacity times 345 days). Pulp im- ports during 1967 amounted to over 120,000 metric tons. There is one small bagasse pulp mill producing roughly 100 metric tons of pulp per day. The pulp is used for production of kraft. The industry produces kraft, tissue, lightweight wrapping, bond, mimeograph and ledger papers; chip board and linerboard; and medium, white, and grey- board. Production of various types of paper and board during 1965-1966 is given in table 15. ( 1967 statistics, not yet available, probably totalled over 190,000 metric tons.) Some of the largest paper mills in Venezuela are subsidiaries of U. S. firms or joint ventures. These include Container Corporation of America, which oper- ates two board mills under the names Cartones Nacion- ales S. A., in Valencia, and Carton de Venezuela S. A., in Caracas. The Weyerhaeuser Company has a minor- ity interest in C. A. Venezolana de Pulpa y Papel (VE- NEPAL) in Moron, the largest Venezuelan paper mill. Other important mills are Fabrica de Papel de Mara- cay (locally owned) and Papeles Venezolanos S. A. (Kruger Corporation of Canada). The mills are gener- ally well-equipped and well-run. Equipment imports have run close to $3 million annually for the last few years. Paper converting is done by a great number of firms, possibly as many as 100. This part of the industry produces stationery, packaging material, kraft sacks for cement and feed, grocery bags, boxes and cartons, wrappers, labels, gummed paper, decals, and napkins. Most of these plants are quite small. Some of the large companies are Papelera Industrial C. A., Shellmar, Manufacturas de Papel C. A. (MANPA), and Cello- Manpa, all in Caracas; Corrugadora de Carton S. A., in Maracaibo (another Container Corporation of America subsidiary) ; and Dixi Cup de Venezuela C. A., in Maracay (American Can Co.). See table 16 for production of converted paper products. The demand for paper products is increasing rap- idly, in large part because of increasing manufacture of consumer goods and a rising user demand for well- packages goods and attractively designed packaging. The converting industry, however, frequently lacks cap- ital, good designers, and knowledge of efficient market- ing techniques. While the U. S. market for converted paper goods is gradually disappearing, there is a grow- ing market for equipment, and excellent opportunities seem to exist for consulting and for joint ventures. The future import market for paper will consist pri- marily of specialty papers, such as security papers, printing papers, and newsprint. 28 CHAPTER VII Rubber Manufactures TIRES AND INNERTUBES Four companies produce tires and innertubes in Venezuela: Firestone, Goodyear, Uniroyal, and Com- pania Nacional Manufacturera de Cauchos y Neumati- cos General, a joint venture of General Tire with local capital. These four companies are in a position to cover practically the entire domestic demand for tires, and imports now consist mainly of aircraft and motorcycle tires, bicycle tires, and some off-size tires. The import of all tires is subject to import licensing. Tire and tube production is given in table 17. The industry's annual capacity for tire production is reported to approach 2 million units. Thus, the indus- try will be able to absorb further consumption in- creases without enlargement. Most of the rubber, natu- ral as well as synthetic, is being imported. Tire cord is now made locally. Carbon black is available from United Carbon's plant in Valencia. The tire manufac- turers also produce camelback, permitting the numer- ous tire recappers to purchase their raw material lo- cally. OTHER RUBBER PRODUCTS Gates Venezolana S. A., a subsidiary of the Gates Rubber Company, and Goodyear de Venezuela produce V-belts of all common sizes, with Goodyear also pro- ducing hose. A number of small, locally-owned compa- nies mold rubber heels and soles, furniture leg tips, foam rubber pillows, rubber floor mats, and other molded rubber products. One manufacturer recently began the production of household and surgical gloves with an installed capacity of 237 metric tons per year. The range of rubber products made in Venezuela is becoming wider and more import restrictions can be expected. Again, future U. S. markets seem to consist of equipment, with possibilities existing for licensing or joint ventures. A heavy duty truck tire being manufactured at Compania Anonima Firestone Venezolana. 29 CHAPTER VIII Leather and Leather Goods TANNING INDUSTRY Venezuela's tanning industry has developed to such a degree that it is now able to satisfy the country's de- mands for practically all leather used to make foot- wear, handbags, travel goods, and small leather arti- cles. Consequently, leather imports now consist of very fine leathers used in the manufacture of luxury goods. Occasional imports of hides are necessary to cover sea- sonal shortages, but generally the industry is able to obtain sufficient quantities of skins from local slaugh- terhouses. Greater care is also being taken in cutting the hides off the animals and in avoiding damage caused by parasites, deep branding, and barbed wire, formerly a major problem of the tanning industry. Reptile skins are tanned by several small companies and there have been occasional exports. The industry imports almost all its tanning extracts. Its equipment comes mainly from Germany and the United States, Germany being the largest supplier. However, equipment imports in recent years have been below $200,000. The industry now consists of 28 plants with a total capitalization of $11 million and a labor force below 2,000. The largest tanneries are Gustavo Zingg & Cia., in Maracaibo, Teneria El Aguila, Vipaq, and Teneria 1 de Octubre, all in Cagua. No foreign capital has been invested in Venezuelan tanneries. Recent production is shown in table 18. LEATHER GOODS The footwear industry is protected by high tariffs, and imports are negligible. There are no reliable statis- tics on the number of shoe manufacturers, their capac- ity, or production, because of the very high count of small individual shoemakers, especially those produc- ing ladies' shoes. The Ministry of Development esti- mates that there are over 1,000 footwear manufacturers and that in 1967 they produced over 10 million pairs of all-leather or partly leather shoes. In addition, the industry produced close to 2 million pairs of rubber- soled, canvas-topped shoes plus an unknown quantity of rubber beach sandals, plastic shoes, and similar foot- wear. Total employment is estimated to be over 12,000. Some of the largest shoe manufacturers are J. M. Benarroch & Cia., Williams Shoes, Calzados Lucas, and Calfi C. A., all in Caracas. Their products are distrib- uted country-wide and are in the medium- to high- priced range. Handbags, travel goods, brief cases, wallets, belts, and similar items are made by a number of smaller companies, the largest of which is probably Fabrica Nacional de Articulos de Cuero y Plastico, in Caracas. Again, production statistics are not available. 30 CHAPTER IX Stone, Clay, and Glass Products CEMENT Venezuela's cement industry consists of seven large, modern plants. Their combined capacity is more than ample for local needs. Products are of sufficiently high quality and low cost that exports during 1967 amounted to 146,370 metric tons, mainly to the West Indies but also to South American countries. Cement production capacity enlarged rapidly during the 1950's to meet the increasing needs of the Venezue- lan construction industry. Cement is used much more extensively than in the United States as a result of the high cost of steel and brick, the requirements of earth- quake-proof building codes (which call for reinforced, pre-stressed concrete for most major buildings., the high cost of wood, and the susceptibility of wood to climatic damage and parasties. Cement production amounted to 2,111,816 metric tons in 1965 and 2,278,303 metric tons in 1967. There is no foreign capital in Venezuelan cement plants. The largest firm, C. A. Venezolana de Cemen- tos, has manufacturing plants in Maracaibo, Barquisi- meto, and Pertigalete, and a sacking plant near Caracas. This firm also owns two cement bulk trans- port ships and has ordered a third. Other important cement producers are C. A. Consolidada de Cementos, with plants in Valencia and Tachira, and Fabrica de Cemento La Vega, in Caracas, which is presently build- ing a second plant at Ocumare Del Tuy. Refractory cement is produced by a plant in Ciudad Guayana (under technical supervision of Harbison- Walker of the United States) to supply the steel mill at that location. Other smaller plants produce refractory material and vehicles to supply foundries and enamel- ing plants. Numerous companies produce cement blocks and pre-cast cement building elements. C. A. Concretera Lock Joint Consolidada, in Caracas, is the largest man- ufacturer of large-diameter concrete tubing. Over 150 companies produce concrete blocks, mosaics, and building elements, as seen below, in thousands of units: 1965 1966 1967 Blocks and shapes 45,532 45,889 44,790 Tubes 1,709 1,816 2,063 Mosaics (cement tiles) 669,648 644,614 809,154 Source: Ministry of Development Caracas, Venezuela. 31 This plant at Pertigalete and others like it in Venezuela produce enough cement to meet local consumption. The cement industry obtains its entire raw material supply locally and uses locally-made sacks. Bulk cement transportation as well as pre-mixing, is becoming more popular, and most larger construction projects use batch plants or contract for the services of one of the several pre-mixing companies. CLAY AND CERAMICS There are over 60 brick yards in Venezuela. During 1967 they produced over 144 million bricks, hollow bricks, and roof tiles. Larger yards, such as Bailou & Maggi and INDARAGUA, in Maracay, and INAL- VENSA, in Barquisimeto, produce specialty shapes and refractory bricks. Most of the yards, however, are quite small and supply only certain regions. Even the larger ones have little mechanization. Clay is available through the country. The Venezuelan Institute for Technical Research, INVESTI, a non-profit organization sponsored by Gov- ernment and industry, has a continuing research pro- ject related to clay and ceramic manufacturing. Part of the project concerns the determination of the availabil- ity of certain clays throughout the country for prepara- tion of light-weight aggregates for the construction of low-cost housing. Another part concerns the availabil- ity of clays for ceramic manufacturing. The three largest ceramics plants are Ceramica Cara- bobo S. A., in Valencia, and Sanitarios Maracay S. A. and Venezolana de Ceramica S. A., both near Maracay. These companies, which have a combined capitaliza- tion of close to $10 million and a combined work force of 1,000, supply the country's needs for bathroom fix- tures and wall tiles. There are no statistics on the out- put of these plants, but there are practically no imports and the industry is protected by high tariffs. There is no domestic production of porcelain table- ware. Traditional earthenware cooking and eating utensils are still popular and are being produced bv a number of small, artisan-type enterprises. Sales opportunities for U. S. companies seem to exist in mechanical equipment for brickyards, but the ceramics plants reportedly have modern plants which will be able to absorb future market increases. GLASS INDUSTRY Venezuela's glass industry has had a somewhat late start. The first bottle plant was established in 1956. Early attempts to manufacture flat glass failed. In 32 recent years, however, the industry has developed satis- factorily and now is able to supply the country's re- quirements for containers, most flat glass, and safety glass. In addition, decorative and artistic glass articles, glass tableware, and mirrors are being produced. Two companies grind optical glass to specification. The industry now consists of 13 glass plants and numerous small converters (mirror cutters, partition makers, etc.). The largest plants are those of Productos de Vidrio C. A. (formerly Fabrica National de Vidrio C. A.), in Cagua, which is locally owned, and Owens Illinois de Venezuela C. A., near Valencia, a fully- owned subsidiary of the U. S. firm. These two compa- nies are the largest bottle makers in Venezuela, with the U. S. firm also producing perfume containers, mar- malade jars, and similar containers. Centro Vidriero de Venezuela S. A., in Guarenas, is a medium-sized manu- facturer of partition and wire-reinforced glass, and also makes demi-johns. Ampoules and small medicine con- tainers are blown by Ampolven C. A. and Envases Generates de Laboratories C. A., both near Caracas, and both locally owned. Flat glass is made by Inveca- Pittsburgh, in Tejerias, which, together with Templex C. A., also produces automobile and construction safety glass. Manufacturers de Vidrios Pianos C. A., recently purchased by Owens Illinois de Venezuela, is the largest window glass producer. Household glass- ware is made by VIDOSA, in Tejerias. Artistic glass- ware is made by ICET Arte Murano and by Cristal- eria Araya, both in Caracas. The industry has a total capitalization of $20 million, and close to 2,000 em- ployees. No production figures are available, but esti- mates range around 70,000 metric tons per year. The glass industry uses local sand, but has to import most other required raw materials. MISCELLANEOUS STONE PRODUCTS Venezuela has rich deposits of marble, which have spurred the installation of a number of cutting and polishing works. About 10 companies produce polished marble slabs, flooring, tile, and decorative marble arti- cles such as lamp bases, table tops, and paper weights. Fibras Aislantes S. A., a subsidiary of the Johns Manville Corporation, produces rock and glass wool in its plant in La Victoria. The firm is able to supply almost the entire local demand for heat and noise insu- lation material, selling especially to kitchen range and refrigerator manufacturers. Quarrying of basalt and granite is done throughout the country. With the popularity of terrazzo flooring, granite split has a ready market. Limestone is being loaded at Barquisimento Quarry for use in Venezuelan cement production. 33 Venezuela's large reserves of high-grade iron ore should encourage continued expansion of steel production. 34 CHAPTER X Metal Products PRIMARY METAL PRODUCTS The vast known reserves of iron ore, coupled with ample sources of power, form the basis for an expand- ing iron and steel industry in Venezuela. The iron ore deposits, of which more than two-thirds have a purity of over 60%, are located primarily in Bolivar State, principally around the Cerro Bolivar, San Isidro, and other mountains. The ore is strip mined from the mountains and transported by rail to Ciudad Guayana (the city formed from Puerto Ordaz, San Felix, and Matanzas) to be used there in the steel mill or to be exported from the deepwater port on the Orinoco River. The two principal mining companies are the Orinoco Mining Company (a subsidiary of U. S. Steel) and Iron Mines Company of Venezuela (a subsidiary of Bethlehem Steel). Iron ore production amounted to 15,502,396 metric tons in 1968. Exports were 15, 034,904 metric tons, mostly to the United States (70%), and West Germany, England, and Italy. Venezuela has two primary steel mills, Siderurgica del Orinoco, C. A. (SI DOR) and Siderurgica Venezo- lana S. A. (SIVENSA). SIDOR, in Ciudad Guayana, is a large Government-owned, integrated steel mill pro- ducing pig iron, ingots, blooms, billets, slabs, seamless pipe, structurals, rod and wire. The mill processes Ven- ezuelan ore but has to import coke and coal. SIDOR's production during the last 4 years is listed in table 19. The mill was originally designed to produce 300,000 metric tons per year of seamless steel tubing. The mar- ket, however, was never this great and the mill for many years operated at a loss, until it was able to put other products on the market. The construction of a new flat products mill is planned, and it is scheduled to commence operation by 1972. This new mill is to have a capacity of 385,000 metric tons per year. The basic steel mill was to have a capacity of 1 million tons by early 1970. The other basic steel mill, (SIVENSA) in Caracas, is a privately-owned mill equipped with two Siemens- Martin furnaces and with a built-in capacity of about 120,000 metric tons per year. The mill has produced roughly 110,000 metric tons of reinforcing rods, wire rods, and flats per year during the last few years. The mill uses scrap metal as raw material. Reinforcing rods from purchased steel are made by Heliacero de Venezuela C. A. and by SIMETACA, both near Caracas. Siderurgica del Occidente C. A. (SIDER- 35 OCCA), in Maracaibo, produces about 25,000 tons of tubing per year, also from purchased steel. Conduit tubing and welded tubing from imported strip is made by a number of companies, and imports are negligible. The most important manufacturers are C. A. Conduven, in La Victoria, Tubo-Teide, in Los Teques, and COVENAL, in Mariara. Oiram C. A., Vicson, and Industrias Fabrenca C. A. are the largest producers of nails. Venezuelan annual production of nails approaches 7,000 metric tons. Wire mesh, cyclone, and other fencing is being manufac- tured from locally purchased galvanized and barbed wire by a number of companies, of which Mallas Sol- dadas S. A., Oiram, Fabrenca, and Oddrycca are some of the major ones. FANAMEC manufactures expanded metal. Flat and corrugated galvanized steel sheeting is made by LAMIGAL C. A. in Valencia. This plant, using the hot pickle method, produces about 28,000 metric tons per year of galvanized sheet. Bolts, screws, and nuts are now being made by three plants which had an output of 3,500 tons of fasteners in 1967. The largest of the manufacturers is Tornillos Venezolanos C. A. (a subsidiary of the Russell, Burdsall & Ward Bolt & Nut Company), in La Victoria, which has 230 employees and a total investment of about $5 million, and produces 9,000 types of screws, transmission line hardware, and automotive fasteners. Venezuela is now almost self-sufficient in the produc- tion of aluminum. Aluminio del Caroni S. A., ALCASA, a joint venture between the Venezuelan Gov- ernment and Reynolds Aluminum, produces 10,000 metric tons of aluminum ingots from imported alumina in its reduction plant at Ciudad Guayana and plans to increase its capacity to over 20,000 tons a year. The plant also produces laminates, structurals, and foil. The largest converter is COVENAL, at Mariara, a joint venture of Montecatini and local capital, which ex- trudes tubing, structurals, and shapes at a rate of some- what over 1,500 metric tons per year. Another extruder and foil producer is Aluminio Nacional S. A., in Mara- caibo, also owned by Reynolds. Extruded copper products recently were placed under import licensing requirement. There are a num- ber of small plants making copper tubing, connections, expansion joints, and similar basic copper products, the largest being Vencobre C. A., in Caracas. FOUNDRY PRODUCTS The Venezuelan foundry industry generally has not been able to keep up with the development of other sections of the metal industry, and there is a considera- ble shortage of efficient foundry capacity. A number of small foundries work with very little mechanization and produce grills, manhole covers, valve connections, elbows, plaques, some machinery spare parts, and other rather simple items made of cast iron, steel, bronze, aluminum, and copper. Probably the largest foundry, which incidentally has a very well-equipped machine shop, is Talleres y Fundicion Catia C. A., in Caracas. Since all foundries work on an order basis, no esti- mates as to their annual production can be made. METAL CONTAINERS Venezuela is self-sufficient in the manufacture of metal cans and containers. There are 14 plants, which in 1967 produced 48,835 metric tons of cans, drums, and containers. The two largest producers are probably Envases Venezolanos S. A. (a subsidiary of the Ameri- can Can Company), with two plants, and Dominguez & Cia. S. A. (operating under a technical aid contract with Continental Can Company), with three plants. Ve- nezolana Van Leer S. A., in Punto Fijo, is the most important manufacturer of oil drums. Square cans for oil and lard are made by, among others, IPICA, in Caracas (a subsidiary of Juan Ernesto Branger y Cia., an edible oil producer). Crown caps also are manu- factured in sufficient quantities by Tapas Corona C. A., in Caracas, and by Industrial Metalgrafica C. A., in Valencia. The industry has a total capitalization of over $25 million, and about 3,000 employees. No raw material is available locally and the industry imports all tinplate and cork. The industry has high-speed, modern machinery of U. S. origin and modern metal lithography equipment. (Locally produced printing inks are used.) METAL FABRICATING Fabricating of structures, vessels, towers, and simple machines had an early start in Venezuela. Because of the small market, metal fabricators have had to be highly diversified. They have now reached a considera- ble degree of efficiency. The industry consists of at least 30 larger shops and numerous small enterprises with only a few employees. Some of the fabricators have converted to the manufacture of white line appli- ances (see below) and others to automobile parts, but most of them still operate on the basis of orders and contracts. Among the more common products are bridges, roof trusses, water towers, storage tanks, scaf- folding, stairs, silos, pre-fabricated building parts such as window and door frames, highway safety rails, cul- 36 Venezuela has two basic steel mills, one of which is Government owned, and the other privately owned. verts, transmission towers, antenna towers, and similar items put together from sheet and structurals. Some of the larger companies are Industrias Van Dam C. A., with plants in Caracas and La Victoria, Talleres Puerto Cabello C. A., in Puerto Cabello, and Talleres Cuni Campalans C. A. and Talleres Hispania S. A., both in Caracas. It is estimated that this sector of the metal industry employs over 4,000 people. The industry is equipped with basic metalworking machinery, such as lathes, power brakes, drills, welding equipment, and similar equipment which can be applied for many types of processes. METAL FURNITURE Venezuela now produces all types of metal furniture, and imports consist of some specialty items such as data processing furniture, complicated operating tables or patented special filing systems. There are 32 plants. In addition to the general metal office furniture, the industry manufactures pantry and garden furniture, bathroom cabinets, kitchen cabinets, and work tables and benches for industry, including the stainless steel fixtures for the above items. Appliance manufacture will be described below. The industry is estimated to have a total investment of over $12 million, and over 2,000 employees. Like many other industries, it is pro- tected by high tariffs. The furniture industry uses imported sheet steel, rails, casters, rollers, and hardware, but buys paints, phosphatizing compounds, and other supplies locally. Recent production of selected items is shown is table 20. Some of the larger manufacturers are Manufacturas San-Roy, ZAID, Manex and Industrial Metalurgica Na- cional C. A. La Vasconia is the largest manufacturer of hospital furniture, while numerous firms such as Metal- urgica Rokel, Industrias Prosperity, and Industrias Sabal produce metal furniture for home and institu- tional kitchens. WIRES A1SD CABLES Venezuelan cable mills manufacture a great variety of electric conductors. The country no longer imports low-voltage and control wires, telephone cables, high voltage cables up to 68 KV, armored and undersea cables, antenna cables, coaxial cables, elevator cables, or magnetic and enameled wire. Mainly copper, but also some aluminum conductors are made. While plas- tics, rubber compounds, and insulating papers are im- ported, the industry uses locally produced carbon black, aluminum and copper rod, asphalt, paraffin, cotton, and calcium carbonate. Reels and packaging materials are also of local production. No production statistics are available. The industry consists of three 37 large and two small companies with a total capitaliza- tion of over $10 million, and close to 1,000 employees. The three large cable mills are Alambres y Cables Ve- nezolanos (ALCAVE), in Maracay, a subisdiary of Phelps Dodge International; Industria Venezolana de Cables Electricos (CABEL), in Valencia, a joint ven- ture between local capital, the General Tire and Rubber Company, General Cable Corporation and CEAT of Italy; and Industria de Conductores Electricos (ICONEL), a subsidiary of Canada Wire & Cable Company. MISCELLANEOUS METAL PRODUCTS India C. A., in Maracay, a subsidiary of the True Temper Corporation, is the only major Venezuelan manufacturer of simple tools, such as machetes, picks, pitchforks, and shovels. Some hardware items, mainly brass plumbing fixtures, are made by INAF (Industria Nacional Articulos de Ferreteria C. A. ) , in Cagua. Yale de Venezuela C. A. shortly will begin making door locks. Storage cylinders for gases are made by Tanques Para Gas C. A., near Caracas. Ace Fastener de Vene- zuela C. A. and Clips C. A. produce paper clips and staples. Gillette de Venezuela C. A. and Plantas y Fac- torias S. A. (Schick) manufacture razor blades. Crom- alloy C. A. is a die and injection caster of refrigerator hardware. Kitchen utensils of aluminum are made by several small manufacturers, primarily by IVA and Envases Nacionales de Aluminio, both in Caracas. There are numerous small companies making Vene- tian blinds, rolling doors, window frames, wire prod- ucts such as baskets, supermarket shopping carts, chicken cages, and similar simple items. No-Sag Spring de Venezuela S. A. produces coil springs and Fenix S. A. (a subsidiary of the Simmons Company) makes springs, seating, and bedspring frames. The number of metal products manufactured is increasing constantly. The products mentioned above indicate the status and available technology of the industry. 38 CHAPTER XI Machinery and Transport Equipment MACHINERY Construction of machinery is rather recent in Vene- zuela. The types of machines made are generally lim- ited to those which can be fabricated from semi-fin- ished parts which require little machining. For in- stance, Industria Mecanica Orion S. A. (IMOSA), in Puerto Cabello, produces cement mixers, batch plants, asphalt mixers, conveyors, stone crushers, and similar equipment for the construction industry in addition to large valves, sluice gates, and irrigation equipment. Piccini de Venezuela recently started the manufacture of similar items. Industrias Van Dam builds boilers in its plant in La Victoria. Manufacturas Gleason S. A. manufactures conveyor systems under license by a U. S. firm. Freight elevators of simple design are being constructed by the same company and by Elevador C. A., in Caracas. Several small companies, the largest of which is probably Metalaire C. A., manufacture ventilators, ex- haust systems, and dust collectors. Water pump manufacture is recent in Venezuela. It was started by Manufacturas Hidro-Mecanicas S. A., in Maracaibo. The largest Venezuelan manufacturer is In- dustrias Fairbanks Morse de Venezuela S. A., a subsid- iary of Colt Industries, producting water and deepwell pumps in its new plant near Maracay. With two more projects having been registered, the Venezuelan Gov- ernment has passed import restrictions on water pumps, allowing only those pump types to be imported which are not being made in the country. Two very small shops produce a limited line of pack- aging machines, primarily for filling paper and cello- phane bags. Venezuelan manufacture of agricultural machinery is limited to small-scale production of simple equip- ment such as plows, harrows, and seeders. A few very small shops are engaged in the manufacture of these items, usually on an order basis, and there seems to be no mass production. More complicated equipment, such as tractors, combines and different types of har- vesters, grain dryers, and barnyard equipment most certainly will continue to be imported. Policy state- ments by high Government officials reflect their belief that mechanization of local agriculture must be encour- aged. Maintenance of agricultural equipment prices at low levels has been given priority over establishment of local production of the equipment. For example, at- 39 tempts to assemble tractors have been discouraged as too costly. In fact, the Government has given financial assistance to farmers' groups for carrying out direct imports of tractors and equipment. By purchasing di- rectly from manufacturers or exporters, these coopera- tives hope to obtain lower prices. This has not really worked out well in the past, because maintenance and parts in some cases were not readily available and during the last 2 years no such direct imports have been made. Barter deals of produce for machinery ran into the same difficulties, and some of the Polish trac- tors obtained a few years ago in exchange for rice found no takers. Venezuelan machinery manufacture is of course lim- ited by the small market, and by the high cost of production resulting from the necessity of having to import most components. The scarcity of skilled labor also is a contributing factor. It is generally believed that the machinery industry will be quite small for many years. TRANSPORT EQUIPMENT Cicloven C. A., a subsidiary of COVENAL, in Mar- iara, is the only manufacturer of bicycles. The com- pany has an investment of $250,000, and produces over 45,000 bicycles per year for men, women, and children. A number of small shops manufacture push carts, industrial carts, wheel barrows, and similar small transport equipment. In line with its industrialization policy, the Venezue- lan Government decided to eliminate commercial im- portation of assembled automobiles after March 1963. As a consequence, several assembly plants, in addition to the two existing ones, were established. At present, there are 11 plants assembling automobiles plus two plants assembling only trucks. The most important companies present are General Motors, Chrysler Corpo- ration, Ford Motor Company, Willy's, Mack Trucks, International Harvester, and American Motors, all of the United States; FIAT and OM trucks, from Italy; Mercedes-Benz and Volkswagen, of Germany; Renault, of France; Nissan and Toyota, of Japan; and Rootes "Jeep" models, 67 truck models, 15 bus chassis models, and 84 passenger car models. Volume of assembly as shown in table 21, has risen considerably from 1960's total assembly of 10,334 units. One small company designs and builds Formula 3 racing cars and has been able to place a few on the market, while another shop is building an open 4-place "buggy" which is becoming quite popular and has found many users among youths. Prices of locally assembled vehicles are very high, which has caused concern in the public and in Govern- ment circles. The basic reasons are the high number of models in relation to the low unit quantity being as- sembled, the high price of local components due to the difficulties in standardization of parts, plus some other, non-industrial factors. While it has been Government policy to force the assembly industry to incorporate an increasing volume of locally produced parts, recent re- marks made during interviews of Government officials seem to indicate that some revision of this policy is being studied. The solution of allowing only a much smaller number of models to be assembled is not consi- dered acceptable, since it would signify a step back- wards. For 1969, the volume of parts to be incorporated has been set at 38.5% of total weight for automobiles; 36% for jeeps; 39% for trucks up to 4,000 kilograms; 27.5%o for trucks over 4,000 kilograms; and 22 % for bus chassis. The list of locally made parts and compo- nents, while relatively long, consists mainly of "hang- on" parts. This list is, of course, limited, and in the future the parts industry will be forced to supply items which require a considerably higher investment in machinery and more advanced technology. Again, with the low volume of consumption and the great variety of types to be made, the cost price for each individual component will be higher. The whole problem is under intense study by all circles but at this time the outcome is unclear. By law, the assemblers have not been permitted to establish parts and components factories. This has caused a great number of new plants to be built and existing metalworking shops to enter into production of automotive parts. The list of items being made in 1969 indicates the stage of development of the compo- nents industry: greases and oils; paints; solvents; welding electrodes; upholstery material; carpets; seat- ing; brake fluids; tires; safety glass; batteries; genera- tors; alternators; starter motors; wires and cables; radiators; shock absorbers; brake linings; clutch discs; exhaust pipes and mufflers; voltage regulators; points; spark plugs: ventilators; wheels; hub caps; bumpers; chrome trim; rubber moldings; coil and leaf springs; fuel tanks; oil, air and gas filters; horns; rearview mirrors; luggage racks; brackets; supports; holders; plastic parts; and tools. The parts industry is reported to consist of 235 com- panies with a total employment of close to 10,000 and a total investment of over $60 million. However, many of these companies also manufacture other products. Very little U. S. capital has been invested in parts 40 manufacture. Most U. S. brands are made by licensees. Some of the U. S. subsidiaries in this industry are: Gates Venezolana S. A., V-belts, (Gates Rubber Co.); the four tire companies, mentioned in Chapter VII; Purolator de Venezuela C. A., filters, (Purolator Prod- ucts Corp.); Venelec C. A., ignition parts, (Roblin Manufacturing Co.) ; Corporacion Venezolana de Acu- muladores S. A., batteries, (Prestolite) ; and Bujias Champion C. A., spark plugs (Champion). There are a number of joint ventures with minority U. S. interests. Seven companies manufacture storage batteries and their production rose from 405,628 units in 1965 to 464,776 in 1967. The firms use imported lead, stoppers, terminals, and separators. The mass, boxes, and acids are of local manufacture. Possibilities for U. S. companies to invest in the automotive parts industry, and sales opportunities for the required machinery and semi-finished products, ap- pear to be excellent. There most certainly will be fur- ther expansion, although it should be expected that the tendency will be towards larger and more diversified companies. Therefore, high-volume production machin- ery will not be as interesting to local manufacturers as flexible machinery which can be utilized to make many different articles. Venezuela is now self-sufficient in the construction of bodies and superstructures for trucks and buses. Imports consist of such specialties as fire trucks, am- bulances, cement mixing trucks, and trucks with scissor or telescropic booms for overhead work. The builders of truck bodies, using locally assembled chassis, pro- duce refrigerated bodies, flatbed trailers, vans, and other body types. Some of the more important body makers are Talleres Gago, Sotelo y Arino, and Talleres Puerto Cabello. Talleres Puerto Cabello and Talleres Hispana also fabricate tanks for petroleum products and stainless steel tanks for beer or milk transporta- tion. Some of the more important bus body manufactur- ers, in addition to Gago and Sotelo & Arino, are ENECA (Blue Bird), in Valencia, Ensamblaje Supe- rior, in Caracas, and Carrocerias Titan, also near Caracas. These assemblers fabricate a considerable va- riety of bus bodies and claim to be able to supply the domestic market. However, 2 years ago 300 buses were imported from Brazil to be used in the Caracas metro- politan transport system and the city has announced that more will have to be imported. This has caused quite a controversy but it seems that one of the reasons for having to import is the relatively low capacity (roughly 50 per month) of the assemblers. Mercedes- Benz, of Germany, presently is building a plant near Barcelona to manufacture trucks and buses and this new plant will increase the available capacity consider- ably. Two small companies manufacture fiberglass bodies for sports and racing cars. SHIPBUILDING The construction of ships in Venezuela is limited to small coastal and fishing vessels, work boats for the petroleum industry, and small pleasure craft. The only large installation is the dry dock in Puerto Cabello, owned by the Navy and able to repair ships up to 35,000 tons. The dock measures 760 feet in length, 105 feet in width, and 36 feet over the blocks. Barges up to 700 tons can be repaired by Diques de Maracaibo C. A., while the Creole Petroleum Corporation maintains facilies at La Salina, near Maracaibo, for the construc- tion and repair of its work boats and personnel car- riers. This installation also has constructed floating derricks. Small boats with metal or wooden hulls are con- structed by Fabrica Venezolana de Lanchas and by Nautiven. Fiberglass boats are made by several small shops around Caracas. Several small shipyards around Maracaibo, Puerto Cabello, La Guaira, and along the Orinoco River repair small coastal vessels and pleasure craft. A factory at Zulia turns out small boats such as these. 41 CHAPTER XII Appliances Venezuela is self-sufficient in the manufacture of household and commercial refrigerators, and import licenses are granted only for large refrigerator-freezer combinations, freezer chests, and for refrigerators for built-in kitchens. Total installed capacity is over 120,000 units per year, while sales during 1968 were estimated at close to 80,000 units. Most well-known U. S. brands of refrigerators are manufactured by licen- sees or by local subsidiaries of the U. S. manufactur- ers. The industry has about 1,500 employees. Venezue- lan manufacture of refrigerators is a combination of manufacturing and assembly. While the sheet metal shell, plastic door liners, and some of the trim are made locally, the industry must import compressors, controls, and hardware. Some of the major manufac- turers are Industrias Gevensa, in Valencia (General Electric) ; SIADCA, in La Trinidad (Admiral) ; Em- presas Incorporadas S. A., in Maracaibo (Norge) ; INSA, in Valencia (Westinghouse) ; and Basol C. A., in Caracas (Kelvinator). Commercial refrigeration equipment, display con- soles, soda fountain bars, and similar equipment are made by a number of smaller operators, the largest of which are Industrias Sabal S. A. (Tyler) and Mercantil Federal C. A. (Federal), in Caracas; and Venezolana de Refrigeracion C. A. (Articold), in Valencia. Tecnica de Refrigeracion Industrial, in Caracas, pro- duces stainless steel refrigerators for hospitals. Total annual production of supermarket-type display con- soles is estimated at over 3,000 units. Cold storage units of many sizes are built by numer- ous small shops which design, construct, and install them according to the wishes of the customer. All these companies utilize imported compressor units. Cooking appliances are made by a number of enter- prises, satisfying the domestic demand for most gas and kerosene ranges and for commercial and institu- tional ranges. Yearly output is estimated at over 100,000 units, not counting table-top kerosene cookers which are very popular in the interior and among the shanty population. A number of well-known U. S. brands are being produced, such as Tappan, Caloric, and Dixie. Venezolana de Esmaltes C. A., near Caracas, INSA, in Valencia, CORESMALT, in Caracas, and Industrias Prosperity S. A. are some of the more important manufacturers of U. S. cooking appliances. Basol C. A. manufactures an Italian model of kitchen range. The industry imports burners, controls, and sheet metal. Water coolers are made by Manufactured de Aparatos domesticos S. A., MADOSA, which also makes gas water heaters. Electric water heaters are manufactured by three companies. 42 CHAPTER XIII Electric Equipment Venezuela's manufacturers of electric equipment are basically assemblers, using imported components. Mass production is done only by the manufacturers of light bulbs ( Industrias Gevensa ), fluorescent tubes (Philips, in Maracay ) , and some of the automotive lines. Several relatively small shops, such as Panelmaster, in Caracas, Danubio, in Maturin, Siemens Venezolana, in Caracas, and Westinghouse, in Maracaibo, assemble control panels and motor control centers. Some household wir- ing articles, such as fuse boxes, switches, knife switches, outlets, cartridge-type fuses, and other simple items are made by a number of small manufacturers in Caracas, Maracay, and Maracaibo. Westinghouse, in its Maracaibo plant, recently started assembly of some standard models of distribu- tion transformers. Small transformers are made by sev- eral very small enterprises, most of them originally transformer and coil rewinding shops. Some simple standard items of transmission line hardware are manufactured by Bermudez Industria Electro-Metalurgica C. A. (BIEMCA) and by Metalur- gica Electro-Industrial C. A. (MEICA), the first in Valencia and the second in Caracas. More complicated hardware items are imported, primarily from the United States. Lamps and lighting fixtures are made by several firms, the largest ones being Century and Lamp-O-Lux. This industry manufactures domestic lighting fixtures from imported components, as well as industrial and street lighting systems. Illumination of highways, stad- iums, and parks is effected by lighting fixtures made in Venezuela. The mercury vapor bulbs are imported, however. Ray-O-Vac International and Union Carbide de Ven- ezuela are the only two domestic manufacturers of dry cell batteries. Their combined output is estimated at 5 million units per year. 43 CHAPTER XIV Electronic Equipment Venezuela now produces a considerable variety and volume of electronic equipment for home entertain- ment. The first assembler was established around 1962. Since then, the number of assemblers has increased to 23, and many internationally-known brands of TV sets, radios, and radio-phonograph combinations are now being assembled in the country. While assembly was initially done from kits supplied by the foreign manu- facturers, production of sub-assemblies and some com- ponents gradually began. The assemblers now usually import their components in "bulk", buying some parts locally and doing all the wiring themselves. The industry early in its development received pro- tection against imports and has been able to increase its production considerably (see table 22.) It is estimated that Venezuela has 750,000 TV re- ceivers and 2,500,000 radios, including miniature tran- sistor sets. The built-in capacity of the industry is considerably higher than its output. Assemblers and component manufacturers are estimated to have capacity as shown in table 23, based on one 8-hour shift at present em- ployment. The following components or accessories are now and high voltage, are also of local being made: TV picture tubes, new and rebuilt; verti- cal, audio, choke, power, and flyback transformers; yokes; channel selectors or tuners; potentiometers: printed circuits; loudspeakers; chasis; IF and RF coils; dials and ferrite antennas; and TV antennas. Wires and cables (magnetic, low control, coaxial, and TV antenna) production. Total investment is estimated at $10 million and total employment has passed 600. Major companies are Industrias Gevensa (General Electric); SIADCA (Ad- miral licensee); Venolanda (Philips); Curacao Trad- ing Company (Philco) ; Sylvania Venezolana (also producing TV picture tubes in addition to Veno- landa) ; and Industria Nacional Electronica S. A. (Singer, Fisher, Majestic, and other brands). Total annual value of production is estimated to have reached $25 million. Venezuela is likely to begin color television broad- casting within the next few years. As a result there will be a considerable import market for broadcast, recep- tion, and testing equipment and parts, as well as for related manufacturing equipment. New manufacturing investment opportunities will also arise. 44 CHAPTER XV Printing and Publishing The printing industry of Venezuela had a slow devel- opment until the middle 1950's when an entirely new phase of its operation began. Rapidly developing new manufacturing industries demanded packaging mate- rial, advertising material, business forms, and many other printed goods previously imported. The graphic arts industry has profited greatly from this trend, and has had an annual production increase of over 30%. Imports of equipment have been close to $5 million annually during the last few years and total investment has passed the $100 million mark. The industry now includes some printing plants which are large by any standard, well-equipped, and very efficient. The industry has close to 8,000 employees. Over 800 printers are registered but their actual number is thought to be over- 1,000. This would include many small job printers, however. Some of the larger print- ers are Union Grafica C. A., at Maracay, a subsidiary of the Container Corporation of America; Montana Grafica C. A., in Caracas; Impresora Tecnica C. A., in Caracas, specializing in business forms, and Cromotip C. A., a four-color printer. Data processing cards are made by McBee de Venezuela C. A. and other, smaller companies. The publishing business has developed under the stimulus of rapid population growth and an intensive anti-illiteracy campaign. Roughly 350 publications ap- pear regularly, and there are 34 daily newspapers. The number of magazines, house organs, children's publica- tions, and professional magazines is increasing stead- ily. The country consumes over 58,000 metric tons an- nually of newsprint, while imports of other printing papers are decreasing due to more diversified local production. The market for printing equipment should remain good as more printing establishments will be forced to enlarge and to modernize. Book printing and collating equipment should find a good market, as most books published in Venezuela are still printed abroad. 45 CHAPTER XVI Miscellaneous Manufacturing Numerous small, artisan-type shops make silver, gold and costume jewelry. Cutting of diamonds and other precious stones is done on a small scale. By far most precious metal jewelry produced is of 18-carat gold. Diamonds are about the only precious stones found in Venezuela. Annual findings average around 80,000 car- ats. Pearls are obtained from the sea off Margarita Island. There are about 20 toy manufacturers, not counting plastics molders. They produce stuffed animals, dolls, building-block toys, wooden and plastic toys, and games. The industry is protected by high duties on imports, but these do not affect mechanical and electri- cal toys not made in the country. Paint brushes are made by five companies. Several small manufacturers produce straw brooms. There are three zipper manufacturers and zippers are no longer being imported. Toothpicks, plastic and wooden, are mads by three firms with a total installed capacity of 3,900,000 boxes. Two companies, Eberhard Faber de Venezuela and Eagle Pencil Company of Venezuela, both subsidiaries of U. S. companies, manufacture lead pencils. These, along with Gillette de Venezuela and a Venezuelan- owned firm, Plumas de Venezuela S. A., also make ballpoint pens. Filing supplies, typewriter ribbons, stencils, and carbon paper are produced by several companies and imports are negligible. Pressure-sensi- tive tape is made by Minnesota 3M de Venezuela S. A., a subsidiary of the Minnesota Mining and Manufactur- ing Company, and by Celoven C. A., a locally-owned company. A number of small enterprises, usually operating only seasonally and usually working as general mer- chandise importers, specialize in the manufacture of Christmas and carnival decorations, party decorations, paper hats, and similar items. Hats of felt and straw are made by a company in La Victoria named Fabrica de Sombreros La Victoria S. A., and by cottage industries, especially on Margarita Island. Phonograph records are made by about a dozen 46 Macagua Dam, near the confluence of the Caroni and Orinoco Rivers, provides power for an electric plant at the new city of Santo Tome de Guayana and the Orinoco Steel Plant. companies, pressing records from imported matrices or tapes. Many well-known international brands are pro- duced locally under license. However, local recording is done on an increasing scale. The industry uses lo- cally produced plastic. High import duties and an im- port licensing requirement effectively protect the indus- try. The most commonly used types of abrasive wheels, stones, and sandpaper are made by Abrasivos C. A., Abrasivos Nacionales S. A., Esmeriles Nacionales S. A., and Minnesota 3M de Venezuela S. A. This indus- try also has received protection against competition from imports. Sporting goods, especially sports clothing, baseball gloves, chest protectors, diving goggles, swim flippers, and other small items, are made locally by several very small manufacturers. Imports of all types of sporting and athletic goods have remained high, however. Spectacle mounts are made by three small manufac- turers who claim that they can supply the market and have received protection. 47 CHAPTER XVII Service Industries ADVERTISING Venezuela's advertising industry is highly developed. It is organized along American lines and uses Ameri- can methods. Many well-known U. S. advertising agen- cies have branches in the country. The industry uses the same media as in the United States and performs similar services including house- to-house campaigns, design of packaging material, and placement of outdoor advertising material. Direct mail advertising is done on a far smaller scale. Outdoor advertising companies generally have well- equipped shops to produce billboards, metal and plastic advertising signs, and neon signs. VEPACO in Caraas is probably the largest of these firms. The industry is estimated to have over 3,000 employ- ees. The appearance of numerous new products replac- ing imported goods, increasing competition and im- proving awareness among the buying public have stim- ulated the development of the advertising industry. AERONAUTICAL EQUIPMENT SERVICING The three major Venezuelan airlines, VIASA, AV- ENSA and LAV, operate their own maintenance facili- ties. LAV also operates a shop for the overhaul of internal combustion and turbo-prop engines. Small air- craft maintenance is handled by a few independent shops in Caracas. Efficient helicopter service facilities. LAV also operates a shop for the overhaul of internal combustion and turbo-prop engines. Small aircraft maintenance is handled by a few independent shops in Caracas. Efficient helicopter service facilities are lo- cated at Maiquetia International Airport. Airframe and instrument repair and overhaul is not done in Vene- zuela. Electronic equipment, except radar, can be re- paired by independent shops in Caracas. AUTOMOTIVE SERVICING Service facilities for automotive vehicles are gener- ally adequate in Venezuela. There are uncounted shops and garages, most of them with no more than 10 em- ployees. Diagnostic centers are just appearing but have not yet become popular. Reconstruction of engines can be handled by several companies, the largest of which probably is Ingenieria de Combustion C. A. in Caracas. Reconstructed parts are not very popular in Venezuela. 48 The price is usually so high that customers prefer to install a new part. Maintenance of heavy construction equipment is or- dinarily handled by the users, although General Elec- tric de Venezuela has several well-equipped plants for the complete overhaul of heavy equipment. Tractors are usually repaired by their distributors. TOOL, DIE, AND MOLD MAKING Although some tool, die, and mold shops exist, they are very small, and the metalworking and plastics in- dustries complain about the inadequacy of available services. In fact, many manufacturers must import these items. Others feel it necessary to install costly machinery for making their own dies and molds. One of the reasons for this scarcity is the lack of sufficient skilled personnel. LAUNDRY AND DRY CLEANING All larger towns have laundries and dry cleaning establishments. Their number is estimated to be over 500, of which almost half are in Caracas. Most are small, and some efficient larger establishments with nu- merous pick-up points and home delivery are obtaining a constantly increasing share of the market. Lav-O- Mat, La Primera, and Nuria are some of the larger companies. Coyne Lavanderia is the only industrial laundry with linen rental service to hotels, restaurants, and hospitals. Diaper services are becoming more pop- ular. Coin-operated laundries, of which several have been established in recent years, have not yet found a wide acceptance, mainly because so many households have maids who do the laundry. The companies use mostly U. S.-made equipment, but use locally produced detergents, bleaches, starches, hangers, film bags, and similar supplies. 49 APPENDIX Economic Data and Foreign Trade Statistics Table 1. — Final value of Venezuelan industrial output, 1965-68 (In millions of bolivares ) 1965 1966 1967 1968 Durable Goods Furniture 351 383 407 420 Lumber 171 162 170 219 Machinery (construction assembly and repair thereof) 70 82 97 111 Metal products (basic) 398 389 489 583 Metal products (other) 564 552 613 644 Non-metallic mineral products 412 443 486 502 Rubber products 232 218 236 264 Vehicles (construction, assembly and repair thereof) 812 892 898 1,039 Total 3,043 3,121 3,396 3,782 Non-Durable Goods Beverages 678 712 752 799 Chemicals 844 843 929 1,026 Clothing 321 332 344 342 Foods 2,006 2,047 2,174 2,221 Graphic arts products 281 311 391 440 Leathers and skins 107 121 114 108 Paper and paperboard 395 409 436 484 Petroleum derivatives 3,461 3,523 3,534 3,536 Textiles 838 846 883 942 Tobacco 386 385 388 413 Total 9,317 9,529 9,945 10,311 Other 263 287 321 333 Grand total 12,623 12,937 13,662 14,426 Source: Banco Central de Venezuela, Informe Economico Correspondiente til Ano 1968, p. A-95. 1 One bolivar = approximately $0.22, for most purposes, at the 1965-68 exchange rate. 51 Table 2. — Venezuelan manufacturing sector gross fixed investment and existing capital, 1966-68 (In millions of bolivares l at 1957 prices) Annual Gross Fixed Investment Existing Capital (1968) % of Manu- facturing 1966 1967 1968 Value Capital 55 :>3 55 535 8.3 49 12 49 360 5.6 42 23 2>) 247 3.8 104 1(13 1(12 1,081 16.8 HI) t:, 63 440 6.8 19 17 1H 135 2.1 213 211 302 1,869 29.0 02 (.3 64 539 8.4 K H 8 49 0.8 (. 5 (. 49 0.8 ■11 46 17 587 9.1 3 3 3 31 0.5 69 62 68 127 6.6 12 14 11 85 1.3 Beverages Chemicals Clothing Foods Graphic arte Leathers and skins Metal products, machinery and transport equipment Non-metallic mineral products Paper and paperhoard Rubber and derivatives Textiles Tobacco Wood and furniture Other Total 6,434 100.0 Source: Banco Central de Venezuela, Informe Economico Corrcspondiente al Ano 1968, p. A— 105. 1 One bolivar= approximately SO. 30 at the 1957 rate of exchange or approximately $0.22, for most purposes, at the 1966—68 rate of exchange. Table 3. — Venezuela: imports of selected principal commodities, 1965—68 [In thousands of bolivares) Commodity 1965 1966 1967 1968 Milk, whole or partly skimmed, dried Wheat Malt Synthetic ruhher and rnhber substitutes Mechanical and chemical pulp of wood, straw, fibers, and rags Artificial and synthetic fibers suitable for spinning Organic chemical products Coal tar dyes Artificial thermoplastic resins Newsprint Paper, paperhoard and cardboard, coated, impregnated, vulcanized, etc. Fabric of artificial or synthetic and man made textile fibers, including glass fiber Iron or steel joists, girders, angles, shapes, sections, bars and concrete rein- forcement rounds, including tube rounds and squares Universal plates and plates and sheets, iron or steel, plain, corrugated, grooved, stamped, perforated, etc., not coated Tinplate Tubes, pipes and fittings, iron or steel (other than cast iron) coated or not, including drain pipes of galvanized sheet 123,408 50,801 68,324 65,847 167,195 165,261 216,868 217,493 26,365 26,735 29,669 34,178 23,202 23,492 23,222 26,827 51,788 50,177 47,923 56,750 12,063 8,759 21,756 15,232 83,372 88,691 121,610 146,417 15,468 13,629 22,466 22,818 14,390 65,078 71,526 76,782 27,019 34,870 34,858 39,712 6,466 10,109 19,081 25,022 46,289 45,296 38,048 46,627 49,994 22,603 31,418 30,025 81,450 76,019 118,741 114,672 68,416 48,170 66,383 63,290 102,425 50,653 32,967 55,393 52 Table 3. — Continued C, xlity 1965 1966 1967 1968 Tubes, pipes and fittings of cast iron 17,303 37,337 30,009 25,716 Bars, rods and strip of copper or copper alloys, other than gold, silver or platinum plated Hand tools for craftsmen Power generating machinery, other than electric Agricultural machinery and equipment Tractors, except steam Office machines Metal working machinery Pumps for liquids, and parts Conveying, hoisting, excavating, road construction, and mining machines and parts Textile machinery and parts Air conditioning and purifying equipment Air pumps (including tire pumps) suction pumps and air or gas compressors with built in motors, or without motors Machinery for separating, screening, washing, crushing, pulverizing or mixing earth, stones and other solid substances Taps, cocks, valves, and similar appliances of base metals for regulating the flow of liquids in pipes (other than cocks for sanitary articles) Generators, alternators, motors and converters, transformers and switchgear Radio telegraphic, radio-telephonic and television transmission and receiver apparatus, with or without cabinet (including radio broadcast receivers, record players, sound recorder combinations and television cameras) 106,628 77,166 87,647 83 Condensers, filters, and other parts for radiotelegraphic and radiotelephonic apparatus Condensers, filters, and other parts for television apparatus Telephone and telegraph apparatus (except radio apparatus) and parts Electrical articles and accessories for motor vehicles, aircraft, boats, cycles, and internal combustion engines Electrical household machines for washing, drying, or ironing clothes Electrical household appliances (mixers, vacuum cleaners, floor polishers, etc.) Passenger cars, other than buses or motorcycles, complete (assembled or unassembled) Trucks and vans (pick-ups and panels) tank and refrigerated trucks and other motor vehicles for the transport of goods Bodies and chassis, without engines; frames and other parts and accessories for road motor vehicles Heavier than air aircraft, complete, (assembled or unassembled), and parts Measuring, checking, and scientific instruments and parts Mechanical household refrigerators and freezers, complete, self contained units, and parts 30,173 17,106 21,280 23,666 18,349 31,383 25,959 27,073 32,251 31,742 31,985 36,729 100,544 94,957 125,391 138,762 48 , 528 43,463 30,810 • 28 , 699 115,510 86,691 97,451 136,381 57,062 72 , 856 77 , 479 94,688 66,190 71,640 70,886 95,113 52,208 51,344 40,098 40,468 178,790 140,806 175,697 220,144 79,838 35,939 49,451 51,119 30,201 36,083 33,985 49,953 18,258 24,074 20,537 24,603 10,042 13,792 16,270 24,463 37 , 762 34,435 35,373 33,275 114,804 125,549 128,163 139,183 13,192 15,425 18,706 19,692 7,704 12 , 505 22,860 20,362 29,669 26,708 37,453 61 , 162 22,550 25,353 26,323 30,219 16,846 22,748 20,784 31,868 19,891 24,891 25,212 32,205 332,214 291,725 340,860 395,953 165,780 130,831 129,498 175,528 146,101 137,861 149,927 166,749 36,880 60,797 79,852 106,473 45,829 53,981 52,825 54,227 068 Source: Ministerio de Fomento, Direccion General de Estadistica y Censos Nacionales, Boletin de Comercio Exterior, Venezuela, January— December 1965- 68, Caracas, 1966-69. Note: One bolivar =$0.2222 for imports in general; exchange subsidy creates effective rate of 1 bolivar =$0.2985 for imports of dried milk and wheat. 53 Table 4. — Principal U.S. exports to Venezuela, 1966—69 (In millions of dollars) 1966 1967 1968 1969 Wheat, including spelt and meslin. unmilled Organic chemicals Iron and steel Engines — internal combustion, except aircraft Tractors, . engines, and parts, except road and industrial Construction and mining machinery, n.e.c, and parts Heating and cooling machinery and equipment and parts Pumps, compressors, centrifuges, etc., and parts Mechanical handling equipment and parts Electric power machinery and parts Electrical apparatus for making, breaking, etc., circuits, and parts Electric household equipment and appliances and parts Passenger cars, trucks, etc. Motor vehicle and tractor parts and accessories, n.e.c Aircraft 28.0 40.5 38 5 39.0 11.0 12.0 15.5 12.7 14.0 13.9 16.3 27.8 10.9 11.4 12 8 13.5 8.7 9 2 10.9 12.5 12.9 15.1 17.5 17.1 12.5 12.2 17.3 24.6 17.8 18.4 22.2 30.2 14.8 13.0 14.3 16.3 14.3 8.7 6.0 7.0 5.6 5.2 6.3 9.4 13.8 10.6 13.4 11.9 42.7 34.4 45.4 46.5 29.2 31.6 34.1 31.6 12.8 14.1 20.9 21.2 Table 7. — Production of confectionery products in Venezuela, 1965—67 (In metric tons) Product Firms 1965 1966 Chocolates Chewing gums Sweets, candy Jams, jellies Party snacks 7 5,356 5,066 5,276 6 3,517 3,448 5,184 32 9,358 8,961 9,667 6 1,689 1,897 1,910 11 392 437 441 Source: Ministry of Development, Caracas, Venezuela. Source: U.S. Department of Commerce, Bureau of the Census, Report FT 455, Annual 1966-69, Washington, D.C. Table 8. — Venezuela: equipment in primary textile mills, 1965-67 1965 1966 1967 Table 5. — Venezuelan production of dairy products. 1965-67 Product L965 1066 Pasteurized milk (1,000 liters) Chocolate milk (1,000 liters) Acidized milk (metric tons) Powdered milk (metric tons) Butter (metric tons) Ice cream (metric tons) Cheese (metric tons) 63,847 186,609 206,999 3,339 3,812 4,999 1,253 1,519 1,330 30,170 32,855 34,439 4,552 3,879 4,317 20,805 20,091 20,689 N.A. N.A. 6,836 Source: Ministry of Development, Caracas, Venezuela. N.A. = Not available. Spindles for: Cotton Waste Synthetic Wool Total Looms for: Cotton Synthetic Wool Total 264,178 264,477 274,108 5,956 5,956 5,754 21,940 22,186 21,940 — 6,000 6,000 292,074 298,619 307,802 4,519 4,437 4,570 1,191 1,189 1,189 213 212 220 5,923 Source: American Embassy, Caracas 5,838 5,979 Table 6. — Production of food specialties in Venezuela, 1965-67 (In metric tons) Table 9. — Average hourly labor cost in selected Latin American countries — salaries plus fringe benefits per hour Product Fruit syrups Fruit in syrup Fruit juices Soups Spices Sauces, mayonnaise Vinegar (1,000 liters) No. of Firms 1965 1966 203 1,351 29,980 2,249 1,186 7,836 4,939 204 896 24,474 2,267 1,299 7,692 4,597 1967 ?09 ),70^ 26,627 3,00" 1,254 11,516 5,467 Source: Ministry of Development, Caracas, Venezuela. Argentina Brazil Colombia Mexico Peru Paraguay Venezuela 0.51 0.25 0.51 0.70 0.85 0.50 1.05 54 Table 10. — Venezuela: production of cotton textiles, 1966-67 Table 13. — Venezuelan production of paints, 1965—67 (In metric ttms) Cotton yarns (metric tons) Unbleached fabrics (1.000 meters) Bleached fabrics (1,000 meters) Drills (1,000 meters) Canvas (1,000 meters) Sheeting (1,000 meters) Other (1,000 meters) Cotton knit fabrics (metric tons) Cotton hose (1,000 pairs) Cotton socks (1,000 pairs) String (metric tons) Bedspreads (1,000 units) Towels (1,000 units) Source: Ministry of Development, Caracas, Venezuela. 1966 1967 17,612 18,363 9,538 11,398 2,483 2,766 2,603 2,257 1,889 2,292 6,893 6,888 48,791 42,403 865 701 383 439 239 591 913 1,060 308 362 3,203 3,573 1965 1966 1967 Paints: in oil in paste in powder Enamels Lacquers, varnishes Solvents 8,285 7,737 9,262 12,390 9,742 12,301 3,443 2,919 3,211 3,984 3,847 4,287 3,354 3,308 3,585 6,355 6,568 6,249 Source: Ministry of Development, Caracas, Venezuela. Table 1 1 . — Venezuela : daily production capacities at IVP Moron plant Chemical Product Hydrogen Chlorine Caustic soda Hydrochloric acid, 33% Sodium hypochloride Sulphuric acid, 98% Phosphoric acid at 50% Simple superphosphate Triple superphosphate Synthetic ammonia Nitric acid at 53%* Nitric acid at 98% Ammonium nitrate calcined, 21% Ammonium nitrate prilled, 35% Ammonia sulphate Urea, 46% Amount ,000 cubic meters 34 metric tons 30 21 16 200 100 120 300 100 185 30 150 10 240 50 Source: Ministry of Development, Caracas, Venezuela. Table 14. — Venezuelan production of lumber, 1965—67 (In cubic meters) 1965 1966 Fine woods Hardwoods Softwoods Sawn lumber Plywood 1967 60,898 59,623 56,358 71,845 74,696 90,926 305,313 317,862 300,173 214,964 204,570 200,590 15,169 13,895 19,624 Source: Ministry of Development, Caracas, Venezuela. Table 12. — Venezuela: petroleum and petroleum products exported in 1967 Crude Natural gasoline Gasoline Solvents Kerosene Jet fuel Gas oil, diesel oil Lubricating oils Asphalt Others $2,026,484,612 1,889,107 74,989,870 23,512,958 80,712,143 12,607,347 626,281,947 12,213,434 11,478,942 15,886,187 Source : Ministry of Development, Caracas, Venezuela. Table 15. — Venezuelan paper and board production, 1965-66 (In metric tons) Bond Toilet Napkins Light wrapping Kraft Linerboard Medium board Grey board White board Total Source: Association of Paper. Carton, and Pulp Manufacturers (APROPACA). 1965 1966 12,342 15,723 13,736 16,159 3,846 3,772 6,217 6,159 48,270 58,979 30,028] 15,830 j 46,000 7,260 6,655 17,438 19,562 54,963 173,009 55 Table 16, -Venezuelan production of converted paper products, 1965-67 (In metric tons) J9o:> L966 lt>(>7 Bags Sacks Labels Envelopes Cups Boxes Plates 18,242 16,702 19,064 24,450 23,662 24,721 582 729 455 1,136 1,131 1,073 4,181 4,165 4,162 54,266 59,125 62,672 669 533 445 Source: Ministry of Development, Caracas, Venezuela. Table 17. — Venezuelan production of tires and innertubes, 1965—67 ( In units) Tires: Automobiles Trucks, tractors, etc. Innertubes: Automobiles Trucks, tractors, etc. 1965 832,881 389,604 461,444 276,825 1966 896,280 430,442 484,654 307,262 1067 844,920 398,986 503,639 279,773 Source: Ministry of Development, Caracas, Venezuela. Table 19. — Venezuela: steel production by SIDOR, 1965-68 (In metric tons) 1965 1966 1967 1968 Pig iron 315,923 351,385 422,202 613,860 Steel 537,427 419,821 564,056 747 , 489 Semi-finished slabs. blooms, and billets 430,053 370,085 500,684 635,585 Slabs 143,113 163,606 278,012 399,257 Pipe 96,126 75,904 97,620 107,208 Structurals 38 , 569 18,955 37,338 73,237 Reinforced rods (including wire rod) 67,441 107,110 88,705 115,728 Barbed wire 8,421 7,889 6,509 8,307 Galvanized wire 17,687 15,152 14,541 23,904 Source: Siderucgica del Orinoco, C.A. (Sidor). Table 20. — Production of metal furniture, 1965—67 (In units) 1965 1966 1967 Filing cabinets Bookcases Easy chairs Beds, cots, cribs Shelves Desks Lockers Tables Chairs, folding chairs Others 8,317 10,076 12,036 3,834 2,879 4,387 10,629 7,661 7,684 97,723 104,227 98,056 10,297 13,647 12,615 12,167 10,179 20,527 11,244 11,304 14,568 18,516 21,251 20,006 111,029 240,765 186,259 428,389 252,865 243,830 Source: Ministry of Development, Caracas, Venezuela. Table 21. — Venezuelan assembly of motor vehicles, 1965-68 Table 18. — Venezuelan production of skins and leather, 1965-67 Skins (1,000 sq. ft.) Liners (1,000 sq. ft.) UpperB (1,000 sq. ft.) Soles (metric tons) Source: Ministry of Development, Caracas, Venezuela. (In units) 1965 1966 1967 Automobiles Station Wagons 27,334 28,605 31,438 Trucks 2,915 2,695 2,113 Pickups 43 111 143 5,511 8,544 7,518 Total 1965 35,941 5,350 7,691 7,663 1966 39,626 5,142 7,789 5,002 1967 38,619) 3,617 J 5,664) 1968 56,695 57,559 53,554 62,617 Source: Ministry of Development, Caracas, Venezuela. 56 Table 22. — Production of electronic equipment, 1966 and 1968 (In units) Table 23. — Venezuela: production capacity of electronics industry (In units per year) TV receivers Radios and radio-phonographs Amplifiers Automobile radios TV-record player combinations Console-type record players 1966 1968 (estimated) 47,573 72,000 50,406 75,000 1,965 2,500 1.0,718 32,000 425 500 973 1,200 Source: Chamber of Manufacturers of Appliances, CAFADAE. TV receivers Radios and radio-phonographs Amplifiers Automobile radios Record players TV picture tubes Transformers ' Potentiometers Loudspeakers Tuners 190,000 100,000 10,000 40 , 000 23,000 100,000 1,300,000 400,000 35,000 62,000 Source: Chamber of Manufactures of Appliances, CAFADAE. 1 Electronic applications only. 57 APPENDIX B Number of Venezuelan Producers of Manufactured Goods, By Type and Location Code Caracas, Federal State of State of State of State of State of State of No. Type of Manufactured Goods Metropolitan District Anzoategui Apure Aragua Barinas Bolivar Carabobo 20 Foods, except beverages 430 595 50 5 91 3 82 106 21 Beverages 22 28 8 1 9 1 8 18 22 Tobacco products 10 3 4 2 23 Textiles 130 96 2 22 1 1 11 24 Textile products, shoes 772 2,277 31 5 58 92 2.". Wood, cork and products, except furniture 61 123 5 5 6 15 18 26 Furniture 212 763 24 9 1 33 39 27 Paper and products 84 57 3 10 7 28 Printing, publishing, and related 176 418 8 4 8 28 29 Leather and products, except shoes 48 82 1 5 3 8 30 Rubber products 49 105 5 7 31 Chemicals and products 147 154 4 21 3 26 32 Products of petroleum and coal 7 1 3 1 3 33 Other non-metallic mineral products 78 112 14 1 41 2 29 33 34 Primary base metal products 10 11 2 5 1 2 35 Other metal products, except machinery ir>8 421 5 25 19 57 36 Machinery, non-electrical 37 82 4 3 2 8 17 37 Machinery (accessories, etc.) 72 608 13 9 19 12 38 Transportation equipment 67 919 16 26 71 39 Miscellaneous 282 339 3 17 23 13 58 Code No. Type of Manufactured Goods State of State of State of Si ate of State of State of State of St ate of Nueva Cojedea Falcon <; uarico Lara Merida Miranda Monagas Kfiparta 8 37 22 131 44 150 13 8 1 8 2 19 8 30 4 1 8 3 1 1 12 1 76 14 42 10 105 1 3 l 18 7 51 4 2 42 10 170 4 3 20 1 1 31 5 41 1 2 (I (I 1 1 1 14 13 7 122 4 () » 6 4 (1 37 15 73 6 7 (1 2 4 2 4 41 8 120 2 8 00 2 1 6 30 12 38 1 1 10 6 103 2 20 Foods, except beverages 21 Beverages 22 Tobacco products 23 Textiles 24 Textile products, shoeB 25 Wood, c*ork and products, except furniture 26 Furniture 27 Paper and products 28 Printing, publishing, and related 29 Leather and products, except shoes 30 Rubber products 31 Chemicals and products 32 Products of petroleum and coal 33 Other non-metallic mineral products 34 Primary base metal products 35 Other metal products, except machinery 36 Machinery, non-electrical 37 Machinery (accessories, etc.) 38 Transportation equipment 39 Miscellaneous Code No. Type of Manufactured Goods State of State of State of State of s tate of State of Portuguesa Sucre Tachira Trujillo Y aracuy Zulia 6 87 108 31 27 148 20 8 7 2 20 11 3 1 2 8 1 1 25 52 7 5 63 5 7 19 1 5 35 2 8 9 5 54 1 9 28 2 1 23 1 16 1 2 8 1 3 8 1 11 2 2 30 2 25 45 15 8 36 1 4 1 7 25 1 36 1 4 9 2 1 7 4 9 1 t) 20 2 1 2 15 15 Territory of Territory of Delta Amazonas Amacuro 20 Foods, except beverages 21 Beverages 22 Tobacco products 23 Textiles 24 Textile products, shoes 25 Wood, cork and products, except furniture 26 Furniture 27 Paper and products 28 Printing, publishing, and related 29 Leather and products, except shoes 30 Rubber products 31 Chemicals and products 32 Products of petroleum and coal 33 Other non-metallic mineral products 34 Primary base metal products 35 Other metal products, except machinery 36 Machinery, non-electrical 37 Machinery (accessories, etc.) 38 Transportation equipment 39 Miscellaneous Source: This listing is based on Ministry of Development data through July 30, 1966 (through December 31, 1963, for the Federal District). Included in the data are most firms with a capitalization of approximately $100,000 or more. The listing should be taken as a rough index, only, of the current distribution of industry. No attempt has been made to correlate the information here with the text of this publication. 59 APPENDIX Bibliography and Sources VENEZUELAN PUBLICATIONS Boletin de Comercio Exterior, Ministerio de Fomento. Import and export statistics. Boletin Trimestral de Estadistieas Industri- ales, Ministerio de Fomento. The Development Minis- try's industrial and consumption statistics. Informe Economico, 1968, Banco Central de Venezuela. The Central Bank's annual report on the nation's economy. Memoria y Cuenta del Ministerio de Fomento. The Development Ministry's annual report. Memoria y Cuenta del Ministerio de Minas y Hidrocarburos. The annual report of the Ministry of Mines and Hydrocarbons. VENEZUELAN SOURCES APROPACA, Association of Paper, Carton, and Pulp Manufacturers. Asociacion de Industrials de Artes Graficas, Print- ing Industry Association. Asociacion de Industrials Metalurgicos, Association of Metalworking Industries. Asociacion Textil de Venezuela, Textile Industry As- sociation. AVIPLA, Plastics Manufacturers Association. CAFADAE, Chamber of Manufacturers of Appli- ances. Camara de Industrials de Caracas, Caracas Cham- ber of Industries. CIFAVE, Association of Pharmaceuticals Manu- facturers. Corporacion Venezolana de Fomento, Venezuelan Development Corporation (Government). CVF Centrales Azucareros, Sugar Mill Corporation of the Venezuelan Development Corporation (Govern- ment). FAVENPA, Chamber of Automotive Parts Manufac- turers. Ministerio de Agricultura y Cria, Ministry of Agri- culture and Animal Husbandry (Government). Ministerio de Fomento, Direccion de Industria, Min- istry of Development, Industry Division (Govern- ment ) . Oficina Central de Coordinacion y Planificacion, CORDIPLAN, Executive Office Planning Office (Gov- ernment). U.S. DEPARTMENT OF COMMERCE PUBLICATIONS Basic Data on the Economy of Venezuela, OBR 67-2, 33 pp., Jan. 1967, 15 cents. Establishing a Business in Venezuela, OBR 69—64, 18 pp., December 1969, 15 cents. Foreign Trade Regulations of Venezuela, OBR 69- 52, 10 pp., October 1969, 15 cents. Introductory Guide to Exporting, 45 pp. -f- vi, April 1969, 50 cents. Selling in Venezuela, OBR 69-23, 13 pp., June, 1969, 15 cents. 60 «r U. S. GOVERNMENT PRINTING OFFICE: 1970 392-242/3 Why do some exporters do "ii SBr than you? Aoooo7 15fllsos Maybe they know the market better . . . maybe they read the timely basic data in- OVERSEAS BUSINESS REPORTS You too can take advantage of these authoritative and up-to-date reviews from 117 markets for your product. For less than $1.50 a month you can join the thousands of U.S. businessmen who receive over 100 reports a year. Join them today. Return this order NOW. 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