The largest steel mill in Venezuela, Ternium-Sidor is to be nationalized, according to a presidential decision made following yet another strike closure.

Ternium-Sidor, which is sixty percent owned by Argentineans was not able to reach an agreement with unions on wages. When the work force went out on strike President Hugo Chavez ordered its nationalization.

The leader of the union at the sprawling Ternium Sidor complex about 300 miles southwest of Caracas, said workers were pleased with the decision, made after months of short strikes in a fierce labor dispute with the company.

"We are here celebrating in an assembly the decision that Sidor returns to state hands," leader Nerio Fuentes told Reuters.

Venezuela's Vice President Ramon Carrizalez said parent company Ternium would be compensated for the takeover and could even stay on as a minority partner, but accused it of holding an arrogant attitude toward employees.

Chavez says that the steel workers will be in much better hands if they work for the state. The nationalization is the most recent in a series of take-over in Venezuela.

Earlier this week Foreign-owned cement companies operating in Venezuela were nationalized, and the Venezuelan oil, energy and telecommunications sectors are now largely in the hands of the state.

SG/HAR