Pat Dollard | Young Americans

CARACAS, Venezuela (AP) - President Hugo Chavez threatened on Sunday to expropriate Venezuela’s largest steel maker due to what he said are the soon-to-be- nationalized company’s excessive compensation demands.

Chavez said he could not help but laugh when he heard that Sidor’s parent company, Luxembourg-based Ternium SA, is asking for at least US$4 billion (euro2.56 billion) in compensation for its 60 percent stake in Sidor.

“I’m not going to pay $4 billion for that company,” Chavez said during his Sunday radio and television program. “If they don’t want to reach an agreement with us, I’ll sign an expropriation decree. I’ll take immediate control over the company.”

Chavez ordered the nationalization of Sidor earlier this month, after months of tense negotiations between the firm and workers, who are demanding better salaries and benefits.

Ternium SA is controlled by Argentine-Italian conglomerate Techint Group. Ternium currently owns 60 percent of Sidor, while the Venezuelan government holds 20 percent. The remainder is in the hands of current and former employees.

Sidor—whose formal name is Siderurgica del Orinoco—was privatized in 1998. The conglomerate produces about 85 percent of the 5 million metric tons (5.5 million U.S. tons) of steel produced annually in Venezuela, according to the Belgium-based International Iron and Steel Institute.

The nationalization of key industries has been a centerpiece of Chavez’s socialist agenda. The government seized majority control last year of joint oil ventures previously controlled by some of the world’s top oil companies, along with the country’s largest telecommunications and electricity companies.

Chavez also announced plans earlier this month to nationalize major cement companies. His government is currently holding talks with Mexico’s Cemex SAB, France’s Lafarge SA and Switzerland’s Holcim Ltd. Chavez has said the companies will be allowed to stay on as minority partners.