President Hugo Chávez said on Saturday that Venezuela’s largest steel maker, Sidor, will not be allowed to make any more exports until it meets domestic needs, and threatened to expropriate the Argentine-controlled company if it resists.
Chávez has criticized Sidor for selling the bulk of its production overseas and forcing local producers to import from elsewhere, saying Venezuelan industry should be given priority.
Sidor’s parent company, Luxembourg-based Ternium SA, is controlled by conglomerate Techint Group of Argentina. Chávez said he has summoned Ternium chairperson Paolo Rocca from Buenos Aires for talks.
”We’re going to pass a law, Rocca. We’re going to force you to supply, first and foremost, the Venezuelan domestic market before you take [the steel] to other countries,” the Venezuelan leader said at a news conference.
”If you don’t agree, give it to me. I’ll grab your company. Give it to me, and I’ll pay you what it’s worth. I won’t rob you,” Chávez said.
Phone calls to Sidor for comment went unanswered on Saturday afternoon.
Chávez, who was recently granted special powers to decree laws, also said he was ready to require that all businesses in Venezuela similarly supply domestic demand before exporting.
”I think we should work on a different model with Latin American business owners,” Chávez said, calling for them to ”operate differently … at least here in Venezuela”.
Earlier this week, Chávez warned he could nationalise Sidor and private banks if they failed to change what he called unscrupulous business practices that harm local industries.
Chávez’s comments on Saturday appeared to reinforce that he does not plan an imminent takeover but rather intends to strong-arm the private sector into coming in line with his socialist revolution.
Since initiating a nationalisation drive in January, Chávez has already moved to take state control of telecommunications, electricity companies and the oil sector.
Earlier on Saturday — which Chávez noted coincided with Karl Marx’s birthday — the Venezuelan leader rode in a red Volkswagen bug to a poor Caracas slum where he officially registered with a movement to create a single, pro-Chávez ruling party: the United Socialist Party of Venezuela.
A close ally of Cuban leader Fidel Castro, Chávez argues Venezuela needs a single socialist party to rein in political interests and more efficiently lead his movement. Many analysts call it an effort to consolidate party control.
”If any rich person wants to become a member of the United Socialist Party of Venezuela, he will be welcome but he must begin by setting aside his wealth to the fight against misery,” Chávez said as he repeatedly invoked the communist ideals of Marx and Leon Trotsky.
Chávez also blasted Venezuela’s Communist Party and other allies who have resisted joining the single party, calling them dogmatic opponents of his revolution and accusing party leaders of preventing members from defecting. – Sapa-AP