Chavez extends nationalization of Venezuelan steel industry

Friday, 22 May 2009 11:50:43 (GMT+3)   |  
       

On Thursday, May 21, Venezuela's president Hugo Chavez announced the nationalization of at least six steel companies, extending the state's influence over the country's steel industry, to create a single large integrated industrial complex.

The companies, located in the state of Bolivar in southern Venezuela, include Matesi, a joint venture between Venezuelan steelmaker Sidor and Luxembourg-based pipe maker Tenaris, Comsigua, a joint venture between Japanese companies Kobe Steel Ltd, Mitsui Group and Sojitz Corp., Tavsa, another Venezuelan subsidiary of Luxembourg-based Tenaris, as well as the US-financed Orinoco Iron.

Together the companies produce millions of metric tons of steel per year.

On May 7, the Venezuelan government agreed to pay Ternium, a subsidiary of the Argentine-Italian conglomerate Techint, $1.97 billion for its 59.7 percent stake in Venezuelan steelmaker Sidor, after months of negotiation over compensation. Chavez has nationalized major steel, cement, electricity and telecom companies since 2006, along with four heavy crude oil projects.


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