CARACAS/MEXICO CITY, Aug. 19 (Xinhua) -- The Venezuelan government took control of Mexican cement group Cemex's plants in Venezuela in a showcase of Venezuela's determination to boost infrastructure construction by controlling the cement industry.

    In a statement sent to the Mexican Stock Exchange Tuesday, Cemex confirmed that the Venezuelan government had taken control of the company's partnership operations in Venezuela.

    Cemex's expropriation came after collapsed negotiations during which Caracas asked to buy the majority shareholding, but they failed to agree on the prices.

    The takeover marked the latest move of the country's nationalization of major foreign-controlled businesses, including companies in the telecommunications, oil and steel industries.

    "Now the cement we produce will not make millionaires of some men far away, (and) it will be used for our houses, our infrastructure and our national development plan," Venezuelan Energy Minister Rafael Ramirez said after the takeover of Cemex.     

    VENEZUELA: TO MEET DOMESTIC WANT

    Cemex, the French enterprise Lafarge and Holcim from Switzerland are three giants in Venezuela's cement industry. Their annually aggregate output accounts for over 90 percent of Venezuela's total cement production.

    The Venezuelan government, however, has been at odds with the three companies in terms of their export amount.

    President Hugo Chavez has repeatedly criticized them for exporting too much, thus creating a domestic supply shortage, driving up cement prices and consequently hindering the development of the building industry.

    Chavez thus in April announced his intention to nationalize the cement industry. He issued an expropriation decree on June 18, and the government began negotiations with Cemex, Lafarge and Holcim on selling their majority shares to Caracas.

    Lafarge and Holcim signed agreements with the Venezuelan government respectively Monday. Venezuela agreed to pay Lafarge 267 million U.S. dollars for an 89 percent share of its local unit and pay Holcim 552 million dollars for an 85 percent stake of its operations within 60 days, while the two companies will stay on as monitory partners.

    But Cemex and Caracas were unable to reach a deal. Cemex demanded 1.3 billion dollars in exchange for its majority share, but the Venezuelan side said the price was too high.

    Cemex reported operating three cement plants in Venezuela until2007, with a production capacity of 4.6 million metric tons per year. The company also owns 33 concrete plants, 10 land distribution centers and four sea terminals.

    Cemex was founded in 1906 in the northern Mexican city of Monterrey. The company currently owns plants concerned in cement, concrete and other stone-based (sand and gravel) building materials in at least 50 countries.     

    MEXICO: REACTS WITH RESTRAINT

    The Mexican government, after Caracas's takeover of Cemex, has reacted with restraint. Many parliamentarians, from both the ruling coalition and the opposition, have suggested that President Felipe Calderon should be cautious and seek a solution through dialogue to avoid tension in bilateral ties.

    The Mexican Foreign Ministry issued a statement Tuesday, saying it urged Venezuela to continue negotiations with Cemex under "the principles of dialogue, nondiscriminatory treatment ... and in agreement with the applicable legal standards."

    However, sources at the ministry said Cemex and Venezuela, despite keeping in touch, were unlikely to reach a deal which could satisfy both sides.