Venezuela will invest 220 million U.S. dollars in the next three years to build a cement plant with help from Iran, an official said on Tuesday.

The Venezuelan government has already paid about 48.5 million dollars to Iran as the first payment for the project. Venezuela will be the sole owner of the new firm whose products will be sold entirely on the local market.

The plant will produce cement of Portland type one and two, which will be sold at around half of average market prices, Rafael Lugo, president of the new company called Cerro Azul, told reporters.

Lugo said the company would produce 1 million tons of cement when it begins to run, and the products were expected to be sold within 18 months.

Venezuelan President Hugo Chavez has complained about the cement price in the Andean nation and pledged to cut it.

Source: Xinhua