Hugo Chavez Nationalizes Cement Industry

Venezuelan Leader Says Move Necessary To Supply Materials To Solve Housing Shortage

(AP)  President Hugo Chavez ordered the nationalization of Venezuela's cement industry, saying his government cannot allow businesses to continue exporting raw materials needed to help tackle a domestic housing shortage.

Speaking during a nationally televised address Thursday, Chavez said the affected cement companies, which include Mexico's Cemex SAB, France's Lafarge SA and Switzerland's Holcim Ltd, will be paid fair compensation in the state takeover.

"We are going to prepare a plan to modernize these cement plants," he said.

Chavez, who says he is leading Venezuela toward "21st century socialism," said the nationalization would take place in the "short term," but did not provide specific dates.

Chavez spent much of 2007 promoting his revolutionary vision of a new Venezuela, and he began by nationalizing the country's electricity, telecommunications, natural gas and oil industries.

But Chavez began toning down his rhetoric after a stinging electoral defeat in December, when his opponents voted down proposed reforms that would have allowed him to enshrine his socialist agenda in Venezuela's Constitution and push forward with an agenda for revolutionary change.

Thursday's takeover order represents his most radical nationalization move since then.

Most of the cement market in this South American country, which has suffered from a severe housing shortage for decades, is supplied by foreign companies.

In Venezuela, Cemex runs three plants that produce about 2.4 million tons annually. Holcim operates two cement plants in Venezuela with a production capacity of roughly 2.4 million tons a year. Lafarge has two plants that produce 1.5 million tons a year.

In Mexico, calls to Cemex offices were not immediately answered late Thursday.

Mexico's Foreign Relations Department released a statement saying it had begun talking with Venezuela's government to understand the reach and nature of Chavez's statements.

"Naturally, as on previous occasions, the department will do everything within its reach to protect the interests of Mexican companies operating abroad," the statement said.

In Caracas, business chamber offices were closed and there was no immediate comment. But in the past, the president's critics, including leaders of local business chambers, have argued the nationalizations will hurt Venezuela's economy by scaring off foreign investors.

Chavez's political allies argue the takeovers are necessary for the success of the government's development plans.

Prior to Thursday's announcement, Chavez had repeatedly expressed frustration with the high cost of construction materials and threatened to seize control of companies that fail to provide low-cost cement for the domestic market.

Last year, he said many of Venezuela's cement factories prefer to sell their product abroad at higher prices and warned: "If the cement factories do not (sell in Venezuela), we will occupy them."

[yongamerica]

With this act is has cast himself as a concrete communist.
But how will this help the housing shortage?

[gce65]

Well, Chavez is trying to build more housing in Venezuela. It''s better than what George W Bush ("Meeester Booosh!") is doing with is remaining time in office.

Whattaya figure King George will do? Pardon more of his administration cronies? Fake interest in Israeli-Palestinian peace? Buy more land in Paraguay so he can escape a war crimes tribunal after he leaves Washington? Give more tax cuts to his big oil and corporate buddies? Start a war with Iran?

[bgwinnett]

If past nationalizations around the globe are anything to go on, I think a lot of new buildings in South America start will falling down this year.

[afmca]

Most of these multi-nationals bring this upon themselves. Their over-riding greed impoverishes the masses and pushes the society in to a state of constant conflict. Good societies have a robust and healthy middle class. Multi-nationals tend to exploit the country''s natural resources giving little to nothing in return. These societies eventually have two social strata - the super rich and the extremely poor. If these multi-nationals would take a long term view and not just short term profits and executive bonuses, these cases of nationalization would not be necessary. Chavez probably won''t deliver in the long term, but in the short term he is looked upon as a hero.

[speakinup]

gce65 - another fuggin Commie lover! Or, is it just Commie ?



What''s the matter Hugo - run out of money to give to the peasants ? Have to rape another industry within your boarders to keep the office ?

I''m telling you, one of two things will happen. Either this man (hah - dog) will die in the near future, or his country will go to war, so the peasants won''t depose him. He''s running out of industries to "nationalize". Translation - steal from the rightful owners and wreck in the process.

[speakinup]

"Chavez probably won''''t deliver in the long term, but in the short term he is looked upon as a hero. Posted by afmca

Excellent way to put it. I''d go the step further and say He will NOT be able to deliver in the long term, and is destroying his economy in the short term, but also looks the hero in the short run. Of course - that''s why he was hoping to set up his dictatorship for life in the last vote. He KNOWS he''s doomed.

[rushman71]

Chavez had repeatedly expressed frustration with the high cost of construction materials and threatened to seize control of companies that fail to provide low-cost cement for the domestic market.

Last year, he said many of Venezuela''s cement factories prefer to sell their product abroad at higher prices and warned: "If the cement factories do not (sell in Venezuela), we will occupy them."

So, what does this say, people? He is taking control of everything. I believe that this is not socialism, but more like communism. He IS a dictator trying to take of Venezuela. Eventhough he lost his chance of having unlimited access to the throne, I''m sure he will take the crown anyway!!!

[rational_1]

I believe that this is not socialism, but more like communism.
Posted by rushman71 at 10:27 AM : Apr 04, 2008

Isn''t a communist just a socialist with a big gun? LOL

In any case I hope Hillary doesn''t get any ideas.

[sevenveils]

So Hugo now controls the cost of concrete. How does that help considering Venezuela does not have a modern transportation system to get this product to the people who need it the most. Donkeys and humans are still the transport of choice to get goods in and out of rural areas.

[prinzowhales]

Good for Chavez...we should do the same thing in America where the Cement Cartel has bought up and oligarch-ized the industry, raising prices to pay for their takeovers and passing them on to the consumers.
Of course...wages in the industry are kept down... Remember, increased wages always cause inflation... increased profits never do...

[aldon61]

Let''s see, the companies were selling overseas because they were making more money, right? They are probably paying the employees more because of their overseas sales. What now happens when the companies are forced to sell to the government at a lower price? The employees will make less is what will happen. What a good ruler this *** is!

[quetzal0666]

Thats too Funny CEMEX bought out one of the largest
U.S. Cement companies....

thats capitalism at work...

[mjvw2]

Good for Chavez...we should do the same thing in America where the Cement Cartel has bought up and oligarch-ized the industry, raising prices to pay for their takeovers and passing them on to the consumers.
Posted by Prinzowhales

yes, socialism is the answer you ignorant a$$

[toolmangler-2009]

Thats too Funny CEMEX bought out one of the largest
U.S. Cement companies....
thats capitalism at work...
Posted by Quetzal0666 at 03:35 PM : Apr 04, 2008




"Chavez said the affected cement companies, which include Mexico''s Cemex SAB, France''s Lafarge SA and Switzerland''s Holcim Ltd, will be paid fair compensation in the state takeover"



He controls the "State", the people do not!!, There are no American companies listed. Venezuela and Cuba, two of a kind.

[rhs648]

There are many ways to redistribute wealth. In my state, Maryland, our governor has pushed through legislation to raise the sales tax from five per cent to six per cent, raised taxes on cigarettes by a dollar per pack to help fund health insurance for the uninsured, and is pushing for a special surcharge on wealthier taxpayers. Our county is proposing to raise the fire tax to help fund volunteer fire companies even though my property taxes are higher than ever and my home is worth $200,000 less than it was two years ago. At least Chauvez is seizing foreign owned companies instead of extorting more money from taxpayers.