Venezuela's largest private steel company Sidetur, Siderurgica del Turbio SA, said that it will take legal action against President Mr Hugo Chavez's plan to nationalize it.

The Sidetur company's board of directors issued a statement on Monday urging the government to consider the impact of the measure on Sidetur's nearly 2,000 employees. Sidetur said that the company will take legal actions to safeguard the rights of workers, clients, suppliers and shareholders.

The owners of the firm said that they are concerned that people may be misled with statements that Sidetur sells rebars at high prices when the company has rather met price regulations strictly. Sidetur said that it has been complying with state issued price controls.

The statement of the Venezuelan steel maker said, among other things, that "Sidetur is a Venezuelan company that has over 60 years of uninterrupted activities in the steel industry. It has always had a respectful relationship with its workers, the environment and has provided support to the development of the community."

"We have invested USD 43 million in the last three years to continue meeting domestic demand, and as a conclusive evidence of the confidence we have always had in the country."

According to the statement, Sidetur is a socially responsible company that abides by the law and complies with all its obligations. The company has 1,857 workers and about 5,000 indirect workers.

President Mr Chavez announced Sunday the expropriation of Sidetur, alleging that it has been charging inflated prices for its products. Mr. Chavez said Sunday that the government will pay fair compensation for the takeover.

The company, formally known as Siderurgica de Venezuela SA, produces about 40% of rebars used for construction in the oil-rich country.

(Sourced from voanews.com