/raid1/www/Hosts/bankrupt/TCRLA_Public/040511.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

             Tuesday, May 11, 2004, Vol. 5, Issue 92

                            Headlines


A R G E N T I N A

ACINDAR: Belgo Mineira Ups Equity Stake in Steelmaker
ALVARO MARTINIC: Court Grants Reorganization Request
AUTOPISTAS DEL SOL: Challenging Newly Authorized Debt Deal
DISTRIBUIDORA JUAREZ: Will Liquidate Assets to Pay Creditors
GLASSIER: Bankruptcy Initiated by Court Orders

GORIZONT: Reorganization Converts To Liquidation
IMPORT MUSIC: Judge Orders Liquidation
NICOL: Files Petition for Reorganization


B R A Z I L

BRASKEM: Outlines Second Half Product Output Expansion
BRASKEM: Aims to Up Synergy Earnings
ELETROPAULO: Registers 1Q04 Loss, Shares Drop
USIMINAS: Expects Higher Costs, Prices


C H I L E

AES GENER: Parent to Attempt Stake Sale Again
TELEFONICA CTC: New Decree Challenged by Entel


M E X I C O

CFE: Posts Big 1Q04 Turnaround
GRUPO MEXICO: Fitch Removes Ratings from Watch Negative
TV AZTECA: Two Board Members Resign


U R U G U A Y

PARMALAT URUGUAY: Parent Outlines Sale Plans


V E N E Z U E L A

PDVSA: To Terminate Oil Discounts
SIDOR: Halts Shipments Again; Strikers Make New Demand
SIDOR: Business Groups Urge Government to Stop Strike


     - - - - - - - - - -

=================
A R G E N T I N A
=================


ACINDAR: Belgo Mineira Ups Equity Stake in Steelmaker
-----------------------------------------------------
In a statement released Friday, Argentine long steel maker
Acindar announced that Brazilian steel conglomerate Belgo
Mineira had raised its stake in its equity to 66% from 50% after
exercising a share purchase option, Reuters says. The company
also disclosed in the statement that the shares Belgo Mineira
acquired were from Grupo Acevedo of the Acevedo family.

Acindar, Argentina's biggest long steel maker with installed
capacity of 1.35Mt/y, reached an agreement at the end of 2003
with its principal creditors to restructure via the issue of new
longer-term bonds without a capital rebate its US$220 million
debt.

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com

          Jose I. Giraudo, Investor Relations Manager
          Tel: (54 11) 4719 8674
          Andrea Dala, Investor Relations Officer
          Tel: (54 11) 4719 8672


ALVARO MARTINIC: Court Grants Reorganization Request
----------------------------------------------------
La Matanza Court No. 3 approved the petition of Alvaro Martinic
S.R.L. for reorganization, reports Infobae. Reorganization, or
"Concurso Preventivo", is an option available for companies
under Argentine Law to prevent a straight liquidation.

The court appointed Mr. Andres I. Martorrel as receiver for this
case. He will verify creditors claims until May 31, 2004. The
individual reports from the verified claims will be submitted to
court on June 28, 2004 while the general report will be
presented on August 25, 2004.

The informative assembly, the last stage of a reorganization
process, will be held on March 03, 2005.

CONTACT: Alvaro Martinic S.R.L.
         Chassaing 7040 Gonzalez Catan
         La Matanza
         Argentina

         Andres L Martorell
         Entre Rios 2942 San Justo
         La Matanza
         Argentina


AUTOPISTAS DEL SOL: Challenging Newly Authorized Debt Deal
----------------------------------------------------------
In a filing to the Argentine stock exchange, Argentine toll road
operator Autopistas del Sol S.A. (E.ADS) announced Friday that a
challenge to the court ruling that approved its out-of-court
US$490 million debt restructuring agreement has been raised,
reports Dow Jones. The company did not provide details as to who
the challenger was, or on what grounds the complaint was made.

The company said the challenge had been made after a commercial
court approved on April 14 its out-of-court restructuring, known
by its Spanish acronym, APE. That decision confirmed the go-
ahead for the deal, which mainly involves swapping bonds coming
due in 2004 and 2009 for 10-year notes at step-up interest rates
or for five-year notes at fixed rates, that a lower court judge
handed down last December.

The toll concessionaire, which had not been formally notified of
the complaint, said it would request the courts to deal quickly
with the challenge to the agreement, which was accepted in
August by 99.66% of the company's creditors.

Earlier, Argentine tax agency AFIP legally challenged the debt
restructuring deal, saying that the company owed the government
money. Ausol dismissed AFIP's move, saying it involved debt that
wasn't owed at the time the company made its debt restructuring
proposal.

Autopistas del Sol is controlled by a private consortium headed
by Sideco Americana S.A. (SDA.YY).


DISTRIBUIDORA JUAREZ: Will Liquidate Assets to Pay Creditors
------------------------------------------------------------
Distribuidora Juarez S.R.L. entered bankruptcy on orders from
Buenos Aires Court No. 14, reports Infobae. Working with Clerk
No. 28, the court assigned Ms. Maria Inez Martinez as receiver.
She is to verify creditors' claims until June 28, 2004.

Creditors who fail to have their claims validated before the
deadline will be disqualified from receiving any payments to be
made after the Company's assets are liquidated.

The individual reports, which are due on August 31, 2004, are to
be prepared upon completion of the verification process. The
court also requires the receiver to prepare a general report and
file it on October 13, 2004. This report contains a summary of
the results in the individual reports.

CONTACT: Ms. Maria Ines Martinez, Receiver
         San Martin 793
         Buenos Aires


GLASSIER: Bankruptcy Initiated by Court Orders
----------------------------------------------
Glassier s Shop S.R.L., a Buenos Aires-based company, has been
declared bankrupt. The declaration signals the Company to
proceed with the bankruptcy process, which will close with the
liquidation of its assets.

Infobae reports that Court No. 20 ordered Glassier s Shop S.R.L.
to begin bankruptcy proceedings under the supervision of Mr.
Ricardo Felix Fernandez, who will act at receiver.

Mr. Fernandez will authenticate creditor's proofs of claim until
June 01, 2004. Afterwards, he will prepare the individual
reports based on the results of the authentication and then
submit these reports to court on July 13, 2004. After these
results are processed in court, the receiver will then submit
the general report on September 7, 2004.

CONTACT: Glassier s Shop S.R.L.
         Grito de Asencio 3448
         Buenos Aires

         Ricardo Felix Fernandez
         Tucuman 1567
         Buenos Aires


GORIZONT: Reorganization Converts To Liquidation
------------------------------------------------
Gorizont S.A., a Buenos Aires-based company that was undergoing
reorganization, was declared bankrupt. Argentine news source
Infobae relates that Court No. 14 ruled that the Company is
"Quiebra Decretada".

The report adds that the court assigned Ms. Sylvia Beatriz Cusel
as receiver. She will be presenting the General Report to court
on October 13, 2004.

CONTACT: Ms. Silvia Beatriz Cusel, Receiver
         Manuel Ricardo Trelles 2350
         Buenos Aires


IMPORT MUSIC: Judge Orders Liquidation
--------------------------------------
Import Music S.A. will liquidate its assets following the
declaration of Buenos Aires Court No. 12 that the company is
"Quiebra" or bankrupt, reports Infobae.

Ms. Silvia Beatriz Giambone, who has been appointed as receiver,
will verify creditors' claims until June 14, 2004 and then
prepare the individual reports based on the results of the
verification process. The individual reports will be submitted
to court on August 10, 2004 followed by the general report on
October 21, 2004.

Clerk No. 23 assists the court on the case, which will close
with the liquidation of the Company's assets to repay creditors.


CONTACT: Import Music S.A.
         Herrera 541
         Buenos Aires

         Ms. Silvia Beatriz Giambone, Receiver
         Av Roque Saenz Pe¤a 651
         Buenos Aires


NICOL: Files Petition for Reorganization
----------------------------------------
Nicol S.A. of Buenos Aires has filed a "Concurso Preventivo"
motion, reports Infobae. The Company is seeking to reorganize
its finances after failing to pay its debts.

The company's case is pending before Court No. 20. Assisting the
court on this case is Clerk No. 40

CONTACT: Nicol S.A.
         Moreno 634
         Buenos Aires


===========
B R A Z I L
===========


BRASKEM: Outlines Second Half Product Output Expansion
------------------------------------------------------
Executives of Brazilian thermoplastic resins maker Braskem said
Friday the company is well on its way to expanding its
polypropylene capacity by 100,000 mt/yr in the second-half of
2004 and take PVC output higher by 50,000 mt/yr the following
year, reports The Economist.

Despite data showing that polypropylene and PVC sales in early
2004 have dropped, Braskem is boosting PP capacity to
650,000mt/yr at its Triunfo complex in southern Brazil, while
PVC capacity would be increased to 535,000 mt/yr.

The company reported PP sales in the first quarter slipped 4% to
107,249/mt from 111,716/mt a year ago, while PVC sales dropped
2% to 108,811/mt in Q1 2004 from 110,679/mt in Q1 2003.
Nevertheless, company executives are confident these markets
will grow, with the Brazilian government keeping interest rates
low.


BRASKEM: Aims to Up Synergy Earnings
------------------------------------
Brazilian petrochemical company Braskem plans to increase
earnings in synergies, and has contracted Solomon Associates, a
U.S. consultancy firm, to outline 200 policies in line with its
goal, Valor Economico reports. In the first quarter, Braskem
reported a BRL$310 million earning out of a possible BRL$330
million in synergies. The company, which has recently approved a
new financial policy, has a BRL$2 billion- cash flow.

Braskem, which was born out of an August 2002 merger between
local groups Odebrecht and Mariani, with giant petrochemical
operation Copene as its base, sells its products in Latin
America, the United States and Europe.


ELETROPAULO: Registers 1Q04 Loss, Shares Drop
---------------------------------------------
Blaming a drop in power consumption despite adding 51,000
clients, Brazilian power distributor Eletropaulo Metropolitana
SA , announced Thursday it posted a net loss of
BRL13.6 million (US$4.5 million) for the first quarter, compared
to a profit of BRL14.2 million in January-March 2003, Reuters
reveals. The loss has also triggered a drop in its shares.

A unit of U.S. power firm AES Corp., Eletropaulo said its net
loss is still about 70% less than in the 4th quarter last year.
The company and its parent averted a debt default when it
renegotiated their debts in Brazil in 2003. Eletropaulo
officials said earlier this year they expected better results in
2004, although warning that the situation was still difficult.

The company's net revenues rose to nearly BRL1.6 billion in the
first quarter from BRL1.4 billion in the same period last year,
aided by a government-allowed price hike of about 11% last year.
Electricity sales, however, fell 3.9%, the company said.

After the loss was announced, Eletropaulo stocks slumped 13.7%
to close at BRL49.01, their weakest close since Nov. 19, 2003.
Brazil's benchmark Bovespa (Sao Paolo:^BVSP - News) stock index
dropped almost 3% in the session to end at its lowest level
since Nov. 11.

Eletropaulo is Latin America's biggest power distributor in
terms of revenue.


USIMINAS: Expects Higher Costs, Prices
--------------------------------------
Brazilian flat steel-making group Usiminas CFO Paulo Penido
Pinto Marques said the company sees an increase in the average
costs per ton of steel produced for the second and third
quarters, says BNamericas. Mr. Marques said iron ore increased
18% at the start of the year, a 37% hike in coal will take
effect in July and a 28% rise in electric power goes into effect
in the second quarter. These hikes, however, have yet to impact
the company's results, he said.

He said that due to the higher volume produced and the product
mix, the company saw its average cost per ton of steel produced
fall 4% to BRL668 (US$223) in the first quarter from the
previous quarter.

Usiminas, Brazil's largest steel maker, also forecast that
international prices will remain high because of continuing
strong Chinese demand and steeper input costs. Some company
executives, however, see a slight drop in international steel
prices in the fourth quarter.


=========
C H I L E
=========


AES GENER: Parent to Attempt Stake Sale Again
---------------------------------------------
Chilean electricity generation company AES Gener has notified
the Chilean securities and exchange commission SVS that its
parent, U.S. energy group AES, will again attempt to sell in
international markets part of its share capital in the Chilean
company, relates the Estrategia newspaper.

AES, which acquired a 98.65% stake in AES Gener for about US$1.3
billion in 2001, tried to sell a 21.38% stake in AES Gener in
March. However, the uncertainties created by the current
Argentinean gas crisis have contributed to the failure of the
sale attempt. As local investors are still too concerned over
the Argentinean energy crisis, AES will only offer the shares
outside the country in its second try.


TELEFONICA CTC: New Decree Challenged by Entel
----------------------------------------------
A legal challenge against the recently-published decree setting
rate ceilings for dominant fixed line operator Telef˘nica CTC
Chile will be posed by Entel, the country's second-largest
telco, according to BNamericas. In a statement, Entel said it
will appeal a clause on interconnection rates in the decree.

The decree, which is valid for five years, allows CTC to hike
interconnection fees by up to 39.6%, and analysts have agreed
that this could be challenged by other operators as the figure
is no longer based on costs, as stipulated in the telecoms laws.

"The reasons behind the hike are clearly not technical, since
there has been no increase in costs or any other technical
reasons to justify it," Entel general manager Richard Buchi said
in the statement.

For the government's part, communications minister Javier
Etcheberry tried to play down the hike in access charges,
claiming the decree was fair for all and that the government has
to ensure CTC can make money. "We have an obligation to [treat
the rate-setting process] as a technical process and ensure that
CTC is adequately profitable. The hike is just one peso
(US$0.0016), from 3.5 pesos to 4.5 pesos, it's not much.
Remember it costs 76 pesos to access mobile networks," he said.


===========
M E X I C O
===========


CFE: Posts Big 1Q04 Turnaround
------------------------------
Boosted by a favorable peso-dollar exchange rate, Mexican state
electric utility monopoly CFE announced Friday it has registered
profits of US$10.6 million in the first quarter of 2004, a big
jump from the US$338.4 million net loss it posted in the first
three months of 2003, reports the EFE news agency.

Investment in plant and equipment "continue to be the most
representative of value, with 88.7% of total assets," CFE said.

With its improved financial position, CFE will be able to meet
its obligations, the company said.

CFE, which is subsidized by the Mexican government, is Mexico's
second-largest company in terms of assets, with assets of just
under US$54 billion and debt of US$21.7 billion. It has 163
power plants under its control.


GRUPO MEXICO: Fitch Removes Ratings from Watch Negative
-------------------------------------------------------
Fitch Ratings affirms the 'B-' local and foreign currency
ratings assigned to Grupo Mexico S.A. de C.V. (Grupo Mexico) and
removes the ratings from Rating Watch Negative. The Rating
Outlook is now Stable. In addition, Fitch affirms the following
ratings for Grupo Mexico's subsidiaries:

Minera Mexico S.A. de C.V. (Minera Mexico)

- Senior secured local currency, 'B';
- Senior secured foreign currency, 'B'.
- Southern Peru Copper Corporation (SPCC)
- Senior unsecured foreign currency, 'BB-'.

Asarco Inc. (Asarco)

- Senior unsecured rating, 'CCC'.

Grupo Ferroviario Mexicano, S.A. de C.V. (GFM)

- Senior unsecured local currency, 'BBB-';
- Senior unsecured foreign currency, 'BBB-'.

In conjunction with these rating actions, Fitch has assigned a
'B' senior unsecured rating to Americas Mining Corporation
(AMC), a wholly-owned subsidiary of Grupo Mexico that is the
direct parent company of Minera Mexico, Asarco, and Southern
Peru Copper Corporation (SPCC).

Grupo Mexico's 'B-' rating reflects the company's high leverage.
As of Dec. 31, 2003, Grupo Mexico's consolidated debt totaled
about $3.1 billion while total EBITDA was $690 million. In 2003,
the company's ratio of total debt-to-EBITDA was 3.5 times(x)
while interest coverage, as measured by EBITDA/interest expense,
was 4.4x. On a non-consolidated basis, Grupo Mexico has about
$80 million of bank debt due in 2004-2005. This holding company
debt is serviced primarily by the dividends Grupo Mexico
receives from its railway subsidiary, Grupo Ferroviario
Mexicano, S.A. de C.V. (GFM), which accounted for about 30% of
GM's consolidated EBITDA in 2003.

GFM's 'BBB-' local and foreign currency ratings are supported by
the company's solid competitive position, strong cash flows and
modest leverage. As a result of the recent financings, GFM's
ratio of total debt-to-EBITDA increased to 2.3x at Dec. 31,
2003, from 1.7x at year-end 2002, and EBITDA to interest expense
decreased to 6x at Dec. 31, 2003, from 27x in 2002. The level of
total debt of about $480 million is not expected to increase
significantly in the future, as both GM and Union Pacific
Railroad (Union Pacific), a minority shareholder, believe the
company is appropriately capitalized. Union Pacific has
indicated to Fitch that it will not approve further debt
increases. It has the ability to control through a very
restrictive shareholders agreement.

Fitch's 'B' rating of AMC, a direct subsidiary of Grupo Mexico,
reflects its high leverage as measured by the ratio of total
consolidated debt-to-EBITDA of about 5.2x. This company's debt
obligations are met primarily with dividends from SPCC. SPCC is
the financially strongest and lowest-cost mining asset held by
AMC due to its low leverage and very competitive cost structure.
This enables SPCC to support AMC's debt obligations with
dividends during troughs in the price cycle for copper. AMC is
rated one notch higher than its parent, Grupo Mexico, since
AMC's largest debt obligation is secured by its 54% stake in
SPCC. As of Dec. 31, 2003, AMC's total consolidated debt,
including that of its mining subsidiaries, totaled approximately
$2.6 billion while consolidated EBITDA totaled approximately
$500 million. Debt at the AMC level only, totaled approximately
$502 million.

During 2003, a year in which copper prices averaged 82 cents per
pound, SPCC generated $290 million of EBITDA. The company ended
2003 with $295 million of cash and marketable securities and
$350 million of total debt. SPCC's ratio of total debt-to-EBITDA
was 1.2x at Dec. 31, 2003 and the ratio of EBITDA-to-interest
expense was 16.5x. SPCC should continue to generate healthy cash
flows in 2004, especially under the current environment of high
prices, as every one-cent rise in copper generates about $8
million in additional EBITDA for the company. Fitch rates SPCC's
foreign currency debt 'BB-'. This rating is constrained by the
'BB-' foreign currency rating of Peru.

Fitch's 'B' rating of Minera Mexico's obligations continue to
reflect the company's high leverage post its debt restructuring
in April 2003. At year-end 2003, the company's total debt was
approximately $1.3 billion. Minera Mexico's EBITDA improved to
$190 million in 2003 from $106 million in 2002. As a result, its
ratio of total debt-to-EBITDA decreased to 7.3x from 13x in
2002, while interest coverage, as measured by EBITDA/interest
expense increased to 1.8x from 1x in 2002. On average, it is
expected that Minera Mexico's EBITDA will increase by about $7
million for every one-cent increase in average copper prices
vis-a-vis 2003.

On Feb. 3, 2004, Grupo Mexico announced that it had presented a
proposal to SPCC shareholders to sell all of its interest in
Minera Mexico to SPCC in return for additional shares in SPCC.
The proposal is pending discussion and approval by SPCC
shareholders and is expected to be a cashless stock-for-stock
transaction.

The possible acquisition of Minera Mexico by SPCC holds the
potential to improve the credit profile of Minera Mexico by
facilitating the refinancing of Minera Mexico's currently
restrictive debt agreements that were the result of the
restructuring completed early last year. Refinancing of this
debt, given the current high copper price environment, would
provide Minera Mexico with increased financial flexibility and
allow it to both reduce its debt and to invest in projects that
enhance free cash flow. If the proposed merger transaction were
not cashless, and Minera Mexico's debt were rebalanced between
it and SPCC, SPCC's underlying credit quality would be weakened
considerably. It is not expected that it would be weakened
enough, however, to result in a downgrade of the company's
foreign currency rating.

Fitch's 'CCC' rating of Asarco's debt obligations reflects the
substantial uncertainty regarding the company's potential
environmental lawsuits, as well as its inability to generate
significant cash flow due to its high cash cost of production.
In 2003, Asarco generated revenues and EBITDA of $360 million
and $17 million, respectively. For each additional one-cent
increase in copper prices, Asarco's EBITDA should increase by
about $4 million.

Currently copper is above $1.30/lb. and has averaged about
$1.17/lb. in the first two months of 2004, a dramatic increase
over the 2003 average of $0.81/lb. and the 2002 average of just
$0.71/lb.

CONTACT:    Fitch Ratings
            Anita Saha, CFA, +1-312-368-3179
            Joe Bormann CFA, +1-312-368-3349
            Alberto Moreno, +55-8-8335-7179
            James Jockle, +1-212-908-0547 (Media Relations)


TV AZTECA: Two Board Members Resign
-----------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA) announced over
the weekend that two of its Board Members, Gene F. Jankowsky and
James Jones have advised the company's Board of Directors of
their resignation as members thereof. TV Azteca will submit to a
General Ordinary Shareholders' Meeting Mr. Jankowsky's and Mr.
Jones' resignations.

Company Profile

TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country.  TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT:  Investor Relations:

          Bruno Rangel
          5255 3099 9167
          jrangelk@tvazteca.com.mx

          Omar Avila
          5255 3099 0041
          oavila@tvazteca.com.mx

          Tristan Canales
          5255 3099 5786
          tcanales@tvazteca.com.mx

          Daniel McCosh
          5255 3099 0059
          dmccosh@tvazteca.com.mx


=============
U R U G U A Y
=============


PARMALAT URUGUAY: Parent Outlines Sale Plans
--------------------------------------------
Collapsed Italian dairy giant Parmalat Finanziaria has decided
to sell off the assets of its Uruguay unit, says EFE news
agency, citing local press reports. Advertisements published by
Parmalat in U.S. and Argentine dailies say that the deadline to
receive offers and requests for information on the situation of
its Uruguayan holding will be on May 21. Interested investors
will be provided financial information on the unit before they
present their bids.

Parmalat Uruguay, the second-largest dairy firm in the South
American country, has not reported any operational or financial
difficulties. Executives said the firm has no outstanding debts
with its suppliers or employees and has an annual turnover of
US$40 million. The Parmalat unit only owes several creditors
some US$28 million, with private banks accounting for US$21
million.

After its parent declared bankruptcy in late 2003 amid a major
financial scandal, Parmalat Uruguay was forced to seek another
guarantor for its loans and was able to ensure its operations
because of its Montevideo assets.


=================
V E N E Z U E L A
=================


PDVSA: To Terminate Oil Discounts
---------------------------------
Venezuela's oil minister said last week that state-owned oil
company Petroleos de Venezuela is planning to put a stop to
discounts in oil sales contracts, those with U.S. affiliate
Citgo Petroleum Corp. included, Bloomberg reveals.

Calling the discounts of as much as US$4 a barrel "illegal",
Energy and Mines Minister Rafael Ramirez said among the
contracts under review include those with Citgo and U.S.
refineries. PDVSA is working with international law firms to
open discussions with existing buyers regarding changes.

According to PDV Finance's filings with the Security and
Exchange commission, the company has longterm supply contracts
with Citgo and Lyondell-Citgo Refining Co. Company officials
said that other contracts exist with the Hovensa SA refinery, a
joint venture between Petroleos de Venezuela and Amerada Hess
Corp., Veba Oel AG, and AB Nynas Petroleum.

Venezuela, the world's fifth-largest supplier of oil, exports 2
million barrels a day in oil and products, of which about
300,000 barrels a day go to Citgo.


SIDOR: Halts Shipments Again; Strikers Make New Demand
------------------------------------------------------
Shipments from strike-paralyzed Venezuelan steel company
Siderurgica del Orinoco (Sidor) have once again been suspended,
as striking workers intensified pressure with an additional
demand, BNamericas relates.

Sidor was recently able to restart shipments of stocked products
to some clients, but Sutiss labor union pressure has once again
completely halted deliveries.

A statement by the company said Sutiss is now asking for a
production bonus for workers, a request that was not originally
presented on its list of demands. "With this new and unheard-of
request to the company and to the government, the union
representatives are trying to justify the strike begun on April
22 that has had Venezuela's principal industrial iron and steel
company paralyzed for 16 days," Sidor said.

Sidor is 60% owned by the Amazonia consortium. Amazonia is made
up of Mexican companies Hylsamex (Alfa group) and Tamsa (Techint
group), Argentine company Siderar (Techint group), Brazil's
Usiminas and Venezuela's Sivensa. Venezuela's government owns
the remaining 40%.


SIDOR: Business Groups Urge Government to Stop Strike
-----------------------------------------------------
In a statement to Venezuela's labor ministry, leaders of more
than 10 local business chambers have urged the government to put
an end to the strike that has been crippling operations at the
country's largest steel producer, Siderurgica del Orinoco
(Sidor), says Dow Jones.

"More than US$165 million has been lost nationwide" due to
shortages of automobile parts, tubing, and manufacturing
components as a result of the strike, said the statement.

The government has been mediating talks between Sidor and the
Sutiss workers' union, but negotiations are at a stalemate. The
company has asked the government to declare the strike, which
began on April 22, as illegal and order the strikers back to
work.

Some 11,000 workers are on strike to demand back pay, improved
health care services and ownership of 20% of the private
company's stock that was promised to them under a 1998
privatization deal. Recently, the workers have demanded that
they be given production bonuses.

Sidor had said earlier that the strike is costing the company
some US$3 million a day in production losses. The company
exports approximately 2.1 million metric tons (2.31 million
short tons) of steel annually to dozens of countries, including
the U.S., Mexico, China and neighboring Colombia.


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

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