Venezuela creates state cement conglomerate

Posted On Thursday, 30 July 2009 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Venezuelan President Hugo Chavez ordered the creation of a state-run cement company, a year after seizing control of 90% of the local industry in expropriations.

Construction IndustryVenezuelan President Hugo Chavez ordered the creation of a state-run cement company on Wednesday, a year after seizing control of 90% of the local industry in a wave of expropriations. The decree said the Corporacion Socialista de Cemento was being established with ten million bolivars ($4.65 million) capital "for the production, sale and marketing of cement and its derivatives." In August 2008, the Venezuelan government ordered the expropriation of Mexican-owned Cemex's local subsidiary, and agreed to pay $267 million for an 89% stake in the Venezuelan subsidiary of the French group Lafarge. It also agreed to pay $552 million for an 85-% share of Swiss-owned Holcim's Venezuelan subsidiary. However, the companies have not been paid yet, and Cemex and Holcim have filed complaints with a World Bank body that arbitrates disputes between countries and private companies. Chavez has said the shortage of housing in Venezuela justified the nationalizations. On average, about 40,000 to 50,000 houses have been built per year since 2004, while the demand is for double that amount, according to industry sources. Chavez, an ally of the communist regime in Cuba, has since 2007 nationalized a whole host of companies in other strategic sectors such as telecommunications, oil and electricity.

 

Last modified on Sunday, 06 October 2013 09:57

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Ongoing property market uncertainty makes the right finance partner key to extracting value

May 26, 2021
Claire Denny
Results from the listed property sector in 2020 showed property values reducing by an…

Pick n Pay and Fortress co-invest in a super distribution centre development

May 26, 2021
Fortress_Pick_n_Pay
Fortress REIT announced that their biggest logistics development to date was signed with…

Exemplar REITail declares final dividend of 49.07 cps and announces 100% distribution

May 25, 2021
Mall of Thembisa
Rural and township retail specialists, Exemplar REITail, have declared a final dividend…

East Rand Mall will soon deliver the first phase of its major taxi rank upgrade

May 26, 2021
Phase 1 upgrade to the taxi rank at EastRand Mall
The first-phase upgrade of East Rand Mall taxi rank in the retail heart of Boksburg,…

Please publish modules in offcanvas position.