October 08, 2008

Ternium Sidor reports advances on cooperation agreement – Venezuela

BNamericas reported that Venezuelan steelmaker Ternium Sidor has submitted a report to the Venezuela’s ministry of basic industries and mining about progress made in applying the cooperation agreement signed on August 23.

According to the report in August more than 80% of steel production was sent to the domestic market to meet high demand and growth in sectors associated with the iron and steel chain. It added that "This degree of domestic provision means that 100% of the market's needs are being met across the entire spectrum of products that the company is able to produce."

Ternium Sidor also said it implemented special discounts on products bound for the local market that will help small and midsize companies.

In August, Ternium Sidor signed a three year cooperation agreement with Mibam to avoid being nationalized. In the contract, the company agreed to maintain the domestic prices of its products below the average price on international markets.

The agreement also establishes that the steelmaker must make investments of roughly USD 500 million in its production facilities in 2007-12.Sidor was privatized in 1997 and is Venezuela's largest steelmaker with average liquid steel production of 4.2 million tonnes per year.

The Ternium steel group is part of Italian Argentine group Techint and holds a 59.7% share in Sidor. The Venezuelan state controls 20.4% through state heavy industry holding company