Assn: Nationalization undermines achievements at Sidor - Venezuela
Wednesday, April 16, 2008
Venezuela's steel industry association Aces is very concerned "about the current situation in the sector," association president Omar Martínez told BNamericas.
The Aces president's comments come after Venezuela's government decided last week to nationalize local steelmaker Sidor, which is 59.7% controlled by the Ternium (NYSE: TX) steel group.
Martínez added that the Venezuelan government "made a sovereign decision and we respect it, but it's a decision that ruins all of the positive things the Ternium group achieved at Sidor."
Argentine-Italian Techint group controls Ternium. The Venezuelan state also holds 20.4% of Sidor through state heavy industry holding CVG and employees own the remaining 19.9%.
Ternium valued at roughly US$2.4bn its Sidor operations in Venezuela, which were privatized in 1997.
Harvey BeltránBusiness News Americas
