Chavez nationalises cement industry

Chavez nationalises cement industry

By Reuters April 3

President Hugo Chavez on Thursday announced the immediate nationalisation of Venezuela’s cement industry, a move that will hit Mexico’s Cemex, just a year after Chavez launched a wave of state takeovers.

The former paratrooper last year launched a broad nationalisation crusade in the energy and telecommunications sectors while threatening to go after other industries such as banking, cement and steel.

”Nationalise it, and as of this instant take all the legal measures ... to nationalise in the short term all of the national cement industry,” Chavez said during a televised speech.

Chavez has frequently accused private cement companies of exporting their production rather than selling it into the domestic market to help ease a housing shortage that has drawn complaints from his supporters.

Last year he warned of ”corrective actions” against Venezuelan Cemex, a local division of Cemex after residents accused it of polluting.

Analysts at the time said Cemex was big enough that it would not likely be affected by a takeover of its Venezuelan holdings.

Investors in recent weeks have started worrying that the world’s No. 3 cement producer could face lower profits as a result of an economic slowdown in the United States.

Venezuela in 2007 took over the assets of Cementos Andinos, owned by Colombia’s Argos.

Chavez threatened to nationalise steelmaker Ternium Sidor over domestic supply complaints but eventually negotiated a deal to avoid it, and threatened to nationalise banks he accused of poor lending practices, but never carried out the threat.

Thursday’s announcement shows Chavez returning to his combative 2007 style of aggressive nationalisations after focusing this year on practical issues following his defeat in a December referendum that would have extended his socialist drive.

He promised to attack day-to-day issues like food shortages and rampant crime after an energy sector nationalisation drive that pushed Exxon Mobil and ConocoPhillips out of the OPEC nation.

The announcement shows Chavez returning to his combative 2007 style of aggressive nationalisations after focusing this year on practical issues following his defeat in a December referendum that would have extended his socialist drive.

”Nationalise it, and as of this instant take all the legal measures ... to nationalise in the short term all of the national cement industry,” Chavez said during a televised speech.

Venezuela last year took over the assets of Cementos Andinos, owned by Colombia’s Argos. In August Chavez warned of ”corrective actions” against Venezuelan Cemex, a local division of Cemex, after residents accused it of polluting.

Chavez’s energy sector nationalisation drive last year brought all the OPEC nation’s oil fields under government control and pushed out Exxon Mobil and ConocoPhillips in the process.