Hugo Chavez threatens to nationalize Sidor

Monday, 07 May 2007 13:41:14 (GMT+3)   |  
       

Venezuelan President Hugo Chavez has threatened to nationalize the country's largest steel producer, Sidor, in an attempt to force the private sector to contribute more to the national economy.

Chavez' threat to take over Sidor follows a string of recent efforts on his part to nationalize private businesses in Venezuela, including banks, electricity companies and oil companies.

According to Chavez, Sidor "has created a monopoly" and has sold the majority of its production overseas, forcing local producers to import pipes from other locations.

The company should give national industries priority, he said, ordering Mining Minister Jose Khan to return from Sidor's headquarters with a recommendation within 24 hours.

Many believe that the nationalization of Sidor may only be a threat, as Chavez would be going up against Argentine President Nestor Kirchner if he tried to nationalize Sidor. Sidor's parent company, Ternium, is controlled by Argentine conglomerate Techint Group.

Chavez' nationalization drive began in January, when his administration started to impose state control over "strategic" companies, taking over multi-billion dollar oil companies, only announcing this week that the government would not be paying cash compensation to them.

"Here we are making an effort to march together - the government, the workers and the people - towards socialism," Chavez said.


Similar articles

Sidor to restart crude steel production in Venezuela

22 Jun | Steel News

Sidor producing far less steel than forecasted

10 Mar | Steel News

Full-year crude steel output at Venezuela’s Sidor reaches lowest level since 2007

24 Jan | Steel News

Venezuela’s Sidor not producing steel as electricity concerns remain

11 Apr | Steel News

Venezuela’s Sidor halts production for two weeks

06 Oct | Steel News

Sidor’s steel production decreases 33.5 percent in 2014

26 Mar | Steel News

South American crude steel production increases 2.6 percent in February

23 Mar | Steel News

Venezuela’s Sidor sees decreasing crude steel production in 2014

22 Jan | Steel News

Latin America's finished steel usage up 2% in January-September

01 Dec | Steel News

Latin America's finished steel usage rises slightly in January-August

31 Oct | Steel News