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Sidor strikes deal with Venezuelan government

Tuesday, 28 August 2007 13:55:38 (GMT+3)   |  
       

Ternium Sidor signed a deal with the government of Venezuela late last week to avoid nationalization as threatened by President Hugo Chavez in May.

Ternium said in a statement that the deal includes giving priority to local markets and "social" companies, and will invest $500 million through 2012 to increase national production.

The company will also hand over operation of the Sidor port on the Orinoco river to the government in exchange for the guarantee that its operations may continue.

This deal follows the announcement from Basic Industries and Mining Minister Jose Kahn, who said earlier last week that Sidor must guarantee the steel supplies the government needs for social projects.


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