05/05/2003 - Source: <a href=www.latintrade.com>LatinTrade-BNamericas

Venezuela's largest steelmaker, Sidor, has introduced an energy saving plan in the face of possible power rationing on account of the currently low water levels in the Guri reservoir, the hydroelectric source for the Guayana region where the company is located. "We do not have a contingency plan as such to deal with rationing, what we do have is an energy savings policy," a company spokesperson told BNamericas. The steelmaker established last year an across-the-board program seeking savings in its operational and administrative areas. One of the first measures to be introduced was the use of scheduled maintenance shutdowns to detect and gauge opportunities to save electrical energy. This measure was extended to include availing of the unscheduled stoppages provoked by lack of materials during the general strike in Venezuela at the end of last year and early this year.

Industrial services management at Sidor estimate the energy savings plan will reduce consumption by 743 million KWH a year. By far the heaviest consumer of power at Sidor is the electric arc furnace steelmaking area, accounting for 75% of the total; followed by direct reduction, hot and cold rolling, ancillary services, maintenance and finally the administrative areas. Meanwhile other big consumers of hydroelectric power in the region who are dependent on the Guri reservoir are also taking measures to deal with the situation. Local aluminum maker CVG-Alcasa needs large quantities of power to operate efficiently. "As there could be problems with power supplies from the Raul Leoni hydroelectric power station which is fed by the Guri reservoir, and almost all our lines use electric power, we do have contingency plans and we are looking at measures to take," an Alcasa spokesperson said. The reservoir is located 90km up river from the confluence of the Caroni and Orinoco rivers in Bolivar state. Ciudad Guayana-based Sidor currently produces some 3.2Mt/y steel. The Amazonia consortium - made up of Latin American steel companies Sivensa (Venezuela), Siderar (Argentina), Usiminas (Brazil), Tamsa and Hylsamex (both Mexico) - controls 70% of the company and Venezuela's state heavy industry holding company CVG has the other 30%.

By Peter Wilson

Caracas, May 5 (<a href=quote.bloomberg.com>Bloomberg) -- Mercantil Servicios Financieros CA, holding company for Venezuela's largest bank, said first-quarter profit soared 53 percent as it boosted lending.

Net income rose to 51.8 billion bolivars ($32 million), or 131 bolivars a share, from 33.7 billion bolivars, or 92 bolivars, for the same period a year earlier, the company said in a release.

Mercantil said its loan portfolio expanded 60 percent to 4.09 trillion bolivars from 2.56 trillion bolivars in March 2002. Provisions for loan losses more than doubled to 48.7 billion bolivars from 19.6 billion bolivars.

The company bought back 8.4 percent of its stock as of March 31 as part of a share repurchase program, Mercantil Servicios said in a statement.

Mercantil Servicios includes Banco Mercantil, an insurance company and brokerage. Last Updated: May 5, 2003 09:05 EDT

By Peter Wilson

Caracas, May 5 (<a href=quote.bloomberg.com>Bloomberg) -- Banesco Banco Universal, Venezuela's fourth-largest bank, is seeking to acquire Banco Exterior SA, or Corp Banca in a bid to gain new customers and cut costs, El Universal reported.

Banesco has approached both banks about a possible purchase, the newspaper said, citing unidentified banking officials. An acquisition would put Banesco within striking distance of overtaking Banco de Venezuela SA to become the country's third- biggest bank.

Exterior and Corp Banca had no immediate response to Banesco's overtures, the newspaper said. Corp Banca is the country's ninth-largest bank by assets and Exterior is 11th.

Venezuela's banking industry is going through a period of rapid consolidation, with the number of financial institutions expected to drop by half from its current number of 52, analysts have said.

(EU 5/5 1-16) To see El Universal's Web site, click on {EUDC } Last Updated: May 5, 2003 07:59 EDT

P.R.Newswire, 5/2/2003 15:35

DIAMOND BAR, Calif., May 2 /PRNewswire/ -- SEMA, the Specialty Equipment Market Association, has taken its campaign to protect specialty equipment markets worldwide to Venezuela where, in a disturbing development, the government has imposed new requirements on custom wheels sold in that country. The new standard is so restrictive that its effect will be to make the sale of non-Venezuelan wheels into that market not economically feasible.

Linda Spencer, director of government and international relations for the association, said, "We conclude that the proposed standard is unnecessary and would result in costly and burdensome requirements with little or no resulting benefit."

The United States government has filed a demarche (official protest) about the standard with the Venezuelan government in tandem with SEMA's protest. The U.S. government called upon the Venezuelan officials to "work with us to ensure that this standard does not inadvertently become a significant non- tariff barrier."

Virtually all international manufacturers of wheels already meet the highest standards and currently comply with ISO, TUV, or similar global quality standards, according to Spencer's protest which urged the Venezuelan government to accept test results verifying compliance with recognized international standards.

The custom wheel market in Venezuela is relatively small compared with the market size in other countries, Spencer said. "These regulations would shut many respected manufacturers out of the country's market. That's certainly going against the trend toward free trade among nations of the North and South American continents," she said.

Recently, SEMA successfully led a similar campaign to keep the Mexican custom wheel market, estimated at $800,000 annually, open to companies wishing to import their products into that NAFTA partner country. While the Mexican government withdrew their initial standard at the urging of SEMA and other companies, Mexican officials are determined to implement a wheel standard and SEMA has been invited to assist in the drafting of that new regulation.

SEMA, the Specialty Equipment Market Association, represents the $27 billion specialty automotive industry. Founded in 1963, the trade association has more than 4,500 member companies. It is the authoritative source of research data, trends and market growth information for automakers and the specialty auto products industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA, 91765-3914; call 909/396-0289; or visit www.sema.org or www.enjoythedrive.com . SOURCE SEMA (Specialty Equipment Market Association)

Reuters, 05.02.03, 2:46 PM ET

CARACAS, Venezuela, May 2 (Reuters) - Venezuelan steelmaker Sivensa <SVS.CR> on Friday reported a sharply narrower fiscal second-quarter net loss, but its sales were undercut by a two-month opposition strike against President Hugo Chavez.

Sivensa, the nation's largest private-sector exporter, posted a net loss $5.7 million for the quarter ended March 31, compared with a net loss of $11.5 million a year earlier.

Consolidated sales for the second quarter slipped 47 percent to $32.1 million from $60.6 million a year earlier as the economic decline and strike hurt the local market. Its foreign market was also hurt by currency controls introduced by the government in February, the firm said.