Chavez: Agreement near on Sidor takeover

Chavez did not give more specifics on the pending "friendly agreement" with Siderurgica del Orinoco, which was controlled by Luxembourg-based Ternium SA until it was officially taken over in May by presidential decree. Chavez accused the company of exploiting workers.

"We have arrived at a point of agreement on the fair price for this Ternium Sidor company, and now we're working out how to pay," Chavez said after meeting with the presidents of Argentina and Brazil at a Mercosur trade bloc summit.

"About 10 percent of the private capital could stay with us," he added.

Ternium is 60 percent owned by Italian-Argentine conglomerate Techint. Ternium representatives in Argentina and Venezuela could not be reached for comment Tuesday evening.

"This company Techint took away Venezuelan iron, large quantities and then sold us back tons and tons of steel piping for gas and oil," Chavez said.

He added that Venezuela has begun building a new steel plant and still welcomes investment as long as it's not part of "neoliberal schemes."

Chavez said his leftist government will transform Sidor into a socialist company by raising salaries and improving benefits for the steelmaker's 4,500 employees. He said Venezuela plans to reduce Sidor's exports and increase steel supplies for domestic consumption.