Venezuela takes over cement units

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Venezuela has seized control of plants and offices belonging to Mexican cement giant Cemex, as it proceeds with nationalising its cement industry.

Government officials backed by the National Guard took over the factories after talks ended without a deal.

It comes a day after France's Lafarge and Swiss group Holcim agreed to hand over local subsidiaries to Caracas.

Venezuela has begun nationalising several industries as part of a drive toward "21st-Century socialism".

At a political rally on Monday President Hugo Chavez said Cemex would move into state hands - after 60 days of failed negotiations - adding: "These are all steps towards socialism."

According to reports, supporters waved flags and cheered as the authorities moved in to takeover Cemex's operations.

Nationalisation drive

"We respect private interests. But no private interest can be above the interests of the people," Oil Minister Rafael Ramirez said as he observed the seizure of a Cemex plant in the eastern state of Anzoategui.

Cemex acknowledged Venezuela's move to take control of its factories in a statement, but declined further comment.

The Mexican group has three cement plants, 30 smaller concrete plants, a shipping terminal and other facilities in the country.

Venezuela's Vice-President Ramon Carrizalez said Cemex had asked for $1.3bn for its Venezuelan sites, a price he said was "well above its real value".

According to President Chavez, the nationalisation of cement operations - as well as the planned buyout of a major steel factory - should enable the government to make faster progress with plans to end a massive housing shortage.

On Monday, Lafarge and Holcim signed agreements setting out the process for transferring majority shares in their Venezuelan operations to the government.

Under the deal, Lafarge sold 89% of its local business for $267m, while Holcim handed over 85% of its unit for $552m.

The country has already begun nationalising a number of industries - including electricity and gas - as part of Mr Chavez's socialism drive.

Banking and telecommunications industries are also set to be taken over by the state.