Ternium SA announced that, upon expiration of the term contemplated under Venezuela's Decree Law 6058, Venezuela, acting through Corporación Venezolana de Guayana or CVG, has assumed operational control of Sidor.

Following the change in operational control, CVG has assumed complete responsibility over Sidor's operations; Sidor's board of directors will cease to function and Sidor's operations will be managed by a 6-member temporary operating committee, the majority of which members will be appointed by CVG. Ternium, however, has not yet transferred its ownership interest in Sidor to Venezuela.

The term provided in the Decree for the negotiation of the conditions under which all or a significant part of Ternium's interest in Sidor will be transferred to Venezuela and of proposed future business relationships between Ternium and Sidor has been extended until August 18th 2008.

The release added that “Ternium continues to reserve all of its rights under contracts, investment treaties and Venezuelan and international law and to evaluate its options in realizing the fair value of its interest in Sidor.”