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Nationalised cement plants are operating normally, says Venezuelan min

Nationalised cement plants are operating normally, says Venezuelan min
By Larry Moonze in Havana, Cuba
Monday August 25, 2008 [04:00]

VENEZUELAN energy and petroleum minister Rafael Ramirez has said the nationalised cement plants are operating completely normal. And Ramirez said with the nationalizing on Tuesday of Holcim, Lafarge and Cemex plants, the Venezuelan government controlled 90 per cent of the cementindustry. According to the press release issued following an inspection report by technical and transition commission, Ramirez said production was at normal level.

"After analysing the current situation, through the reports of technicians and transition (commission members), we can tell the country that nationalized
cement plants are operating completely normal," he
assured.

Ramirez, who is also president of Petroleos de Venezuela (PDVSA - state owned oil company), said
Venezuela nationalised the three transnational cement plants upon expiry of negotiation period.

"The government recovered the cement plants in
exercising sovereignty right after the negotiation period ended," he said. "The private sector has full opportunities in Venezuela but their interests cannot
be above our people's interests."

Ram’rez said now that the state owned 90 per cent of
the cement industry, it would allow to revising and reducing
of commercial costs.

He also said workers' jobs would be guaranteed.

Ramirez said the Venezuelan government nationalised
the cement industry as part of a development strategy. He said the measure would help government efforts to eliminate the country's housing deficit of between 1.5 and two million housing units.

Ramirez explained that the cement and concrete
production strategy was to guarantee housing and infrastructure for Venezuelans. He said a work group commission would be created to look and solve workers' problems regarding benefits, labour liabilities and contract issues as well as to
deal with environmental matters and technological
improvements.

Ramirez said these would require an aggressiveinvestment plan. He asked workers at Cemex plant to change their white
helmets for the "revolution's red helmets". "From now on workers will use red helmets as it
happened with the oil nationalization," said Ramirez.

"You (workers) will be the symbol of national sovereignty in these facilities."Finance minister Ali Rodriguez said the Venezuelan government negotiated the purchase of 85 per cent of shares with Holcim company for US$552 million.

He said the same procedure was carried out with Lafarge
in a US$267 million deal for 89 per cent shares. Rodriguez said both firms kept control of the rest of the shares. He said in the case of Cemex the deal was not reached because the firm asked for US$1.2 billion.

Rodriguez said the US$1.2 billion that Cemex demanded
was well above the stock market price of below US$400
million.

He said given the situation, the expropriation was
decreed. Rodriguez said the Cemex plant used outdated
technology therefore it would have to be upgraded to
match the other two companies.

He said the nationalization of the cement industry was in line "with a very coherent strategy" in the field
of the metal industry, and the Bank of Venezuela?

Labels: CEMENT, CHAVEZ, NATIONALISATION, VENEZUELA

posted by MrK @ 6:32 PM