After announcing last week that he might nationalize the country's largest steelmaker, Sidor, Venezuelan President Hugo Chavez announced at a press conference in Caracas on Saturday his intention to institute a law to force Sidor to meet local demand for steel or face government takeover.
Addressing Paolo Rocca, chairman of Ternium SA, Sidor's parent company, and the largest industrial group in Argentina, Chavez declared: "We are going to pass a law, Rocca. We are going to force you to supply first and foremost the Venezuelan domestic market before you take (the steel) to other countries. If you don't agree, give it to me. I'll grab it from you. I'll pay you what it's worth. I won't rob you."
Mr. Chavez also told the press that he intends to require all businesses in Venezuela to similarly supply domestic demand before exporting.
Two Latin American publications have since reported that Mr. Rocca will travel to Caracas to visit with President Chavez from May 14 to 16, though Techint has not confirmed this.
It was also reported that following the press conference, Argentinean President and ally Nestor Kirchner made a phone call to Mr. Chavez and asked him not to nationalize Sidor.
Until approximately one year ago, Sidor regularly exported flat rolled, long, and semi-finished products to the US, though it has been absent from the US market since that time, due to Venezuela's strong domestic market.