September 07, 2008

Tavsa union says Tenaris wants to shut down Tavsa

BNamercas reported that the union at Venezuelan seamless tube manufacturer Tavsa, local subsidiary of Luxembourg based Tenaris, believes that the parent company aims to shut down the Venezuelan unit.

A spokesperson from Venezuelan steelworkers union Sutiss told BNamericas "The plant has been at a standstill for 30 days because of a strike that started because of poor service in the cafeteria but the company has not bothered to resolve the issue."

The spokesman added that "In spite of the simplicity of the issue at hand, the company has not backed down. Tenaris wants to take full advantage of momentum at its other companies in the region. The group is waiting for Tavsa to collapse in order to promote its other tube manufacturers.”

Tavsa is the only seamless steel tube producer in Venezuela and supplies state oil company PDVSA, but the Sutiss spokesperson believes that Tenaris can fill orders with its other companies in which it holds 100% control. The spokesperson added that "In Venezuela, Tenaris has Tavsa which is a JV so its earnings have to be split with the Venezuelan state and that is not as attractive.”