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Sidor Shares Declared of Venezuelan Public and Social Interest

05/01/2008 - The Republic of Venezuela’s National Assembly passes a resolution declaring that the shares and assets of Ternium SA's majority-owned subsidiary Sidor are of public and social interest.

The National Assembly of the Republic of Venezuela has passed a resolution declaring that the shares of Ternium SA's majority-owned subsidiary Sidor, CA, together with all of its assets, are of public and social interest.
 
This resolution authorizes the Venezuelan government to take any action it may deem appropriate in connection with these assets—which could include expropriation.
 
While continuing to preserve all of its rights under contracts, investment treaties and Venezuelan and international law, Ternium said that it is prepared to continue discussions with the Venezuelan government regarding adequate and fair terms and conditions under which all (or a significant part) of Ternium's interest in Sidor would be transferred to the government.
 
Ternium is one of the leading steel companies in the Americas, offering a wide range of flat and long steel products. With 21,000 employees and primary operations in Mexico, Venezuela and Argentina, Ternium had annual sales of approximately US$8 billion in 2007 as well as annual shipments of approximately 10 million tonnes of finished steel products.