Venezuela to take over big steelmaker

President Hugo Chavez’s government said Wednesday that it would nationalize Venezuela’s largest steelmaker, bringing one more key industry under state control in its drive toward a socialist economy.

The action comes after months of difficult negotiations between the steelmaker Sidor and its workers, who have been demanding better salaries and benefits. It also comes only days after Chavez announced a state takeover of leading cement companies.

Vice President Ramon Carrizalez said the nationalization was meant to protect workers’ rights and complained that the company showed “great arrogance” in the talks.

“The president has instructed me to inform the company that the government is taking control of the business,” Carrizalez said.

He said the government tried to help Sidor and the workers reach a solution, but “there was no will on the company’s part to settle the conflict.”

The vice president said one option would be for the government to assume a controlling share of about 60%, with the company’s owners keeping 20%. He said the government will negotiate and pay fair compensation.

The nationalization of key industries has been a centerpiece of Chavez’s socialist agenda. The government took majority control of telecommunications and electricity companies last year, along with Venezuela’s last remaining privately run oil projects.