September 08, 2008

Law regulating iron and steel sector ignites expectations

Reed Business Information Ltd reported that Mr Hugo Chávez president of Venezuela is waiting for the Supreme Tribunal of Justice to endorse a law regulating iron and steel industries at Guayana in south Venezuela.

The legal instrument recently issued by the Venezuelan government has to be endorsed by Supreme Tribunal of Justice for enactment and publication in the official gazette. It said that the legislation is intended to organize the iron and steel sector and give way to the takeover of Sidor along with its workers.

According to sector's representatives, the enactment of this law has caused confusion and expectation in the iron and steel sector in Venezuela. Uncertainty emerges as in the past the Venezuelan state has moved to seize control of a majority stake in the oil and electricity sectors.