President Hugo Chavez on Wednesday ordered the expropriation of Venezuela's largest steel maker.
His government will turn Siderurgica del Orinoco into "a socialist company," Chavez told workers gathered for a televised event at a Caracas theater.
Sidor, as the company is known, was previously controlled by Luxembourg-based Ternium SA.
Chavez announced plans to nationalize Sidor earlier this month. Venezuelan officials had been talking with Ternium representatives to reach a deal for its 60 percent stake in Sidor, but the two sides were unable to reach an agreement. Chavez said the company demanded excessive compensation for its share.
Sidor, a former state company, was privatized in 1998.
