The Construction Forestry Mining and Energy Union (CFMEU) is working to establish a Latrobe Valley factory that would manufacture solar hot water services, and representatives met with the Ambassador for the Bolivarian Republic of Venezuela Nelson Dávila to discuss a partnership between the two nations.

The factory would be run by the community as a social enterprise.

Union organiser Dave Kerin said the project could potentially be rolled out to other states and expanded to manufacture additional renewable technologies such as wind generators.

Mr Kerin said the union hoped to get the project off the ground next year.

Union Victorian mining and energy president Luke van der Meulen said the region should not rely on private corporations to invest in renewable energy.

``We're hoping the future for the Valley includes social enterprise where workers have control,'' Mr van der Meulen said.

Mr Dávila said many industries in Venezuela were run as a social enterprise.

``A lot of companies are now under the workers' control,'' he said.

Mr Dávila took a Power Works tour during his visit and met Latrobe City mayor Lisa Price.

Cr Price welcomed the project.

``It's in line with council's strategy to diversify the economy,'' she said.

``Solar hot water services are going to be in great demand and it's good that we'll start manufacturing them locally.''