CARACAS, (Reuters) – Venezuela’s President Hugo Chavez nationalized a large U.S. and Italian-owned fertilizer plant yesterday, a new sign the socialist leader is speeding up his state-led revolution following legislative elections last month.
The government would take over Fertinitro, a large fertilizer plant part-owned by private U.S. company Koch and Saipem <SPMI.MI>, a subsidiary of Italy’s Eni <ENI.MI>, Chavez said, speaking on his weekly television show.
Chavez has already put large swathes of the OPEC member country’s economy into state hands. On Sunday, he also announced the nationalization of Venezuelan motor lubricants company Venoco.
“Expropriate it.” Chavez said during the broadcast from a farm the government bought two years ago. He also said he was sending a bill to parliament that will allow the government to expropriate unused urban land and stalled construction projects, in a bid to speed up new home builds.
A shortage of quality housing is a serious problem that Chavez has struggled to tackle during his 12 years governing the country of more than 28 million people, which has a fast-growing population.
Chavez has stepped up nationalizations since his Socialist Party won a reduced majority in a legislative election in September. Last week the government took over agricultural supplies firm Agroislena.
When the new parliament is formed in January, the Socialist Party will not have the two-thirds majority needed to pass some major legislation, such as the urban land bill, which will likely be passed before then.
Venezuela’s state petrochemicals firm Pequiven holds 35 percent of Fertinitro, a Koch Industries subsidiary holds 35 percent and Saipem holds 20 percent. Another 10 percent is owned by Venezuela brewer and food firm Polar.
The affected companies did not immediately respond to requests for comment.
Last month, Fitch Ratings maintained Fertinitro Finance’s $250 million 2020 bonds at ‘CCC’ on rating watch negative.
“Fertinitro, located in the Jose Petrochemical Complex in Venezuela, ranks as one of the world’s largest nitrogen-based fertilizer plants, with nameplate daily production capacity of 3,600 tonnes of ammonia and 4,400 tonnes of urea,” the Fitch report said.
