April 21

Techint expects Venezuela to pay USD 3.6 billion for stake in Sidor
In the takeover of steel and iron company Sidor by Venezuela, one of the aspects that is yet to be established is the payment the Venezuelan government is to make to purchase the Argentinean holding Techint's stake in the steelmaker. However, the corporation has already made its calculations, according to Argentinean newspaper Clarín.

Based on the report, the Argentinean company believes the compensation for the shares would amount to some USD 3.6 billion. In a meeting held last April 18 between
Techint CEO Paolo Rocca and Argentinean President Cristina Fernández de Kirchner, he stated that Sidor is not a loose piece, but it is linked to another plants owned by the holding, especially to Argentina's Siderar.

Rocca pointed out that Sidor represents 30 percent of Ternium's production. Ternium groups all of Techint companies manufacturing flat bar steel. Therefore, the compensation is expected to be high.

April 22

Minister denies sliding sugar output because of government intervention in Valles del Turbio
The sugar output will not tumble as a result of the government intervention in more than 30 farms in Valles del Turbio, north-western Lara state, said Minister of Agriculture and Lands Elías Jaua during an interview with TV show "En Confianza" aired on state-run TV channel VTV.

He conceded that the sugar cane cutting season was ending and said that the government had resorted to imports for other reasons, including the lack of enough investment in privatized sugar mills.

The high-ranking official complained about a "media strategy" purported to show that the government was seizing productive plots of land and harming farmers.

Over the past two weeks, the Venezuelan government announced its decision to seize a number of farms in Valles del Turbio, based on the assumption that they were idle.

Venamcham President: Nationalizations threaten investment
The government recent move toward nationalization endangers private investment, the levels of which "has been relatively low over the past few years" and may shrink even more, said Edgard Jardine, the chair of the Venezuelan American Chamber of Industry and Trade (Venamcham).

"While nobody questions the government right to expropriate, provided that there is fair indemnity for the property, nobody is to invest a significant amount of money and told eventually that it is a strategic sector and will be taken out," said Jardine.

The business leader said that the announcement have "a serious matter of concern" for the private sector. "We are very worried about investment."

April 24

Nationalization costs estimated at USD 2.9 billion
The Venezuelan government considers some sectors as strategic. Therefore, the nationalization of companies is advancing. In 2007, telecommunications and electricity companies were taken over. Now, the turn is for cement makers and iron and steel companies.

Through special delegations, the Venezuelan government is negotiating to get the majority shareholding of the cement makers owned by Mexico's Cemex, France's Lafarge, and Switzerland's Holcim, as well as Venezuela's iron and steel maker Sidor. The companies' valuation is one of the matters being discussed by the interested parties, due to the fact that the state purports to own 60 percent of the shares.

A report issued by Barclays investment bank on Venezuela's current situation shows that the state could pay 2.9 billion dollars for the nationalizations.

Cemex vows to ensure the interests of investors and employees in Venezuela
Lorenzo Zambrano, CEO of Mexican cement maker Cemex, promised on Thursday to defend the interests of its workers and investors amidst the nationalization of the industry decreed by Venezuelan President Hugo Chávez.

"We will be vigilant of the interests of employees and investors," said during a press conference the chair of Cemex Administrative Council. Cemex ranks third in the world based on its output capacity.

Zambrano reported that last April 7th, three days after Chávez's announcement, the managing directors of Cemex and other cement makers met with Venezuelan government representatives. The officials told the managers that the decision was made because the government views the sector as strategic.

April 25, 2008

Chávez plans to turn Sidor into a socialist company
Venezuelan President Hugo Chávez strongly recommended the workers of Venezuelan Orinoco's steelmaker (Sidor) leaving aside the capitalist model that has damaged the company's operations.

At Florentino Productive Genetic Center, in Barinas, west Venezuela, the president pointed out that the steelmaker workers "are committed to turn Sidor into a socialist company, socialism!"
On Thursday, after 6:30 pm, some 2,000 Sidor ex-workers took over the administrative head office of Venezuelan Corporation of Guayana, a mining conglomerate, from where 200 workers were not allowed to leave.

They requested the presence of CVG chairman Rodolfo Sanz, who promised to discuss with them the sale of 10 percent of Sidor shares. Since Sanz was not present, the discussion on Sidor collective bargaining agreement was not held. Consequently, Sutiss (United Steel Industry Workers Union) does not rule out to halt the plant's operations again.