November 21, 2008

CVG takes over operational control of Sidor

Ternium SA recently announced that the Venezuelan government assumed the total operational control of the recently nationalized steelmaker Siderúrgica del Orinoco.

Ternium warned international customers and capital markets that “Following the change in operational control, Sidor's board of directors will cease to function and Sidor's operations will be managed by Corporación Venezolana de Guayana that has assumed complete operation control and complete responsibility over Sidor's operations.”

According to the release "Sidor's operation will be managed by a six member temporary operating committee, the majority of which members will be appointed by CVG." It said that "Ternium, however, has not yet transferred its ownership interest in Sidor to Venezuela."