"The plant has been at a standstill for 30 days because of a strike that started because of poor service in the cafeteria but the company has not bothered to resolve the issue," a spokesperson from Venezuelan steelworkers union Sutiss told BNamericas.

"In spite of the simplicity of the issue at hand, the company has not backed down. Tenaris wants to take full advantage of momentum at its other companies in the region. The group is waiting for Tavsa to collapse in order to promote its other tube manufacturers," the spokesperson said.

Tavsa is the only seamless steel tube producer in Venezuela and supplies state oil company PDVSA, but the Sutiss spokesperson believes that Tenaris can fill orders with its other companies in which it holds 100% control.

"In Venezuela, Tenaris has Tavsa which is a JV so its earnings have to be split with the Venezuelan state and that is not as attractive," the spokesperson added.

Tenaris holds a strategic partnership with state heavy industry holding company CVG for Tavsa.

The official did not say how large the loss has been at Tavsa due to the strike.

No company executives were available to speak with BNamericas on the issue.

In Latin America, Tenaris owns seamless steel tube operations in Mexico (Tamsa) and Argentina (Siderca), along with welded pipe plants in Brazil (Confab) and Argentina (Siat).

Located in Venezuela's Puerto Ordaz, the Tavsa plant has production capacity of 80,000t/y of seamless steel tubes and employs nearly 200 workers.

Harvey Beltrán
Business News Americas