Reply #40: Venezuela renationalizes iron, steel industry [View All]

[Judi Lynn]

Venezuela renationalizes iron, steel industry
www.chinaview.cn 2008-04-10 13:12:30

CARACAS, April 9 (Xinhua) -- The Venezuelan government announced Wednesday the renationalization of the Orinoco Iron and Steel (Sidor) enterprise, the biggest steel group in this South American country.

The measure is the second of its type affecting foreign capital this week after Colombian President Hugo Chavez announced on April 3 the nationalization of the cement industry.

Vice President Ramon Carrizales said Sidor's nationalization was decided by Chavez to defend the enterprise's workers.

"The president has instructed me to inform the company that the government is taking control of the business," Carrizalez said .

The rights of the enterprise's major stockholders, Italian-Argentine Ternium-Technit, will be respected, said Carrizales in reference to paying for their Sidor stocks.

Carrizales called Ternium-Technit directors to begin negotiations with the government to sell their 60 percent share. The government holds 20 percent and the workers hold 20 percent.

Sidor was privatized in 1997 by the previous Venezuelan government.

More:
http://news.xinhuanet.com/english/2008-04/10/content_7953022.htm