$Unique_ID{COW04010} $Pretitle{271} $Title{Venezuela Private Enterprise with a Commitment to Venezuela} $Subtitle{} $Author{Empresas Polar} $Affiliation{Embassy of Venezuela, Washington DC} $Subject{polar venezuela venezuelan new empresas economy cnv company important system} $Date{1990} $Log{} Country: Venezuela Book: Venezuela An Opening And Expanding Economy Author: Empresas Polar Affiliation: Embassy of Venezuela, Washington DC Date: 1990 Private Enterprise with a Commitment to Venezuela Empresas Polar is a diversified Venezuelan industrial enterprise that ranks as one of the largest and most solid private concerns in Latin America. Polar initiated its commercial activities nearly five decades ago as a beer producer with 50 employees. Today, Empresas Polar figures as one of the world's largest beer producers and operates an extensive production and distribution network in sectors such as processed foods, agricultural goods, packaging and industrial equipment. The company currently employs over 14,000 persons and provides indirect employment to tens of thousands of other Venezuelan families. Beer and non-alcoholic malt beverage still account for a major portion of corporate activities, but Empresas Polar also produces and markets a broad range of items such as corn and rice derivatives, pasta products, animal feed, ice cream, snacks, wines, pork and fowl products, packaging materials and parts and equipment for industrial applications. In addition, Polar has formed partnerships with prominent international companies in a variety of industrial and commercial areas. Empresas Polar has developed one of the largest and most efficient distribution networks in the country. It invests substantial sums in agricultural and biotechnical research and, as a demonstration of its commitment to social progress, provides broad support to education, scientific research, health, environmental improvement and cultural activities. Polar's Philosophy The business philosophy of Empresas Polar's stockholders played an important role in the company's rise from a small beer producer to a major industrial concern. The key elements of Polar's business philosophy are the following: - Management's primary task is to meet the needs of the consumer and serve the community. Polar in the World Market Polar ranks as one of the largest beer producers in the world. With 50 years of experience, Empresas Polar is one of the most important private concerns in Latin America in terms of production, sales and professional management. In addition to its substantial activities in Venezuela, Polar owns and operates food processing companies in Colombia, Ecuador, Peru, Jamaica, Guatemala, Honduras and Panama. Polar researchers have developed new advances in brewing techniques, food processing and tropical agriculture. - Human resources are the company's most important asset and are assigned management's maximum priority. - Manufacturing the highest quality products is one of the company's guiding principles. - Reinvestment of profits is a basic part of the company's financial policy, a strategy that has allowed Empresas Polar to expand and diversify with great success over the last half-century. - A permanent commitment to technological innovation over the years has generated steady improvements in important areas of Polar's businesses. For example, the company was the first to implement a new system in beermaking technology whereby a single cylindro-conical tank is used for fermentation, maturation and stabilization without transfer. In addition, Polar researchers developed a new product - pre-cooked corn flour - which has become a mass consumption item in Venezuela. This cornbased food product was developed at a time when Venezuelan consumers were turning away from the traditional use of native corn and buying products made with imported wheat. - Professional management, merit-oriented promotions and the training and integration of young personnel form a fundamental part of Polar's orientation. - The company actively seeks solutions for the nation's social and economic problems. - Polar also works to preserve the country's natural resources and tries to create a harmonious relationship between its industrial operations and the surrounding environment. A leader in the Venezuelan market Applying these principles consistently has aided Empresas Polar to attain its present position in the Venezuelan market. The company currently serves over 50% of the national market in important products such as beer, malt beverage, pre-cooked corn flour, corn oil and snacks. Empresas Polar has an installed beer production capacity of over 1.5 billion liters per year, making it one of the largest breweries worldwide. The company owns four brewing plants located in different regions of Venezuela and operates a nationwide sales and distribution network made up of 8 distribution companies and 81 storage facilities. Polar's 1,700 delivery units reach 98% of all commercial establishments where beer is sold in Venezuela. Another important area of business activity is Polar's processed food line. The company owns and operates ten food processing plants. In addition, it manages a national distribution network that reaches 47,000 points of sale, representing 90% of all outlets for food products in Venezuela. The company has set up its plants on a regional basis in order to provide better service and to advance Venezuela's ongoing process of industrial decentralization. Polar in Venezuela Polar is an important factor in the Venezuelan economy, providing employment directly to 14,000 persons and indirectly to 38,000 others. Empresas Polar developed one of the country's largest and most sophisticated distribution systems for all of its products. A leading national supplier of processed foods and a firm promoter of Venezuelan agriculture. Market leader in beer, malt beverage and corn products. Installed beermaking capacity of 1.5 billion liters per year. Breweries and other production facilities are located strategically in different regions of Venezuela, thus contributing to the ongoing process of industrial decentralization. International experience Empresas Polar also is examining new business opportunities overseas. The Venezuelan government recently altered its economic policy in an effort to promote new exports. But the company has been exporting beer to the United States market for over 2 years, and the expertise gained in this area will be useful for future overseas ventures. Partnerships with international companies are considered an important element in Empresas Polar's diversification strategy. Thus far Polar has joined forces with the following concerns: Henkel KGA: Henkel Venezolana, C.A. Industrial chemicals Martell and Seagrams: Bodegas Pomar, C.A. Viniculture and wine production Reynolds International: Superenvases Envalic, C.A. Metal containers Owens-Illinois: Vidrios Los Andes, C.A. Glass containers Nestle: Comercializadora Savoy C.A. Distribution of candies and snacks In addition to its export trade to the United States, Empresas Polar also owns and operates processed food companies in Colombia, Ecuador, Peru, Jamaica, Guatemala, Honduras and Panama. These subsidiaries were acquired from Beatrice International Foods Co. Empresas Polar has contracted technical assistance programs with leading European companies such as Ziemann GmbH and Albert Handtmann GmbH of Germany, and OLMI SpA of Italy, covering the Venezuelan manufacturing of tanks, valves and heat convertors used in the food industry. Moreover, it has gained extensive international experience as a direct importer of raw materials used in beermaking, and as a contractor of specialized services from overseas consultants covering a range of industrial and agricultural sectors. Polar's Social Commitment Through the Polar Foundation, the company supports a wide range of activities, including agricultural and scientific research, health, education, conservation and cultural events. The foundation emphasizes programs aimed at improving educational opportunities, particularly for economically-disadvantaged children. Polar established the country's first program of awards to Venezuelan scientists, and is the leading private-sector contributor to scientific research projects and their practical application, especially in agriculture. The company has sponsored many books, research projects and educational films devoted to Venezuelan history, culture and geography. Promoting Venezuelan Technology Polar has pioneered advanced techniques in beer production, such as the use of cylindroconical vessels for one-tank brewing. In the processed foods sector, Polar developed a new corn product, pre-cooked corn flour, which has become an important part of the Venezuelan diet. The company provides substantial funding for research in agriculture, biotechnology and other areas. Polar scientists have adapted crops to tropical climates. Polar offers biennal prizes for outstanding research projects carried out by Venezuelan scientists. The Polar Foundation The shareholders of Empresas Polar strongly emphasize the company's role as a sound corporate citizen and believe that private enterprise must work vigorously to solve the country's social and economic problems. Through the Polar Foundation (Fundacion Polar), established in 1977, the company provides substantial support for a variety of social and cultural activities. Every two years, the foundation awards the Lorenzo Mendoza Fleury prizes to Venezuela's outstanding scientists. These awards are the most prestigious of their kind in this South American nation. The Polar Foundation also contributes to applied agricultural research; sponsors a wide variety of books and research projects dedicated to Venezuelan history, culture and geography, and provides scholarships and grants for educational projects, especially to help economically-disadvantaged youths. The foundation recently published the "Dictionary of Venezuelan History," the first work of its kind. This book is an important tool and reference guide for all students. Empresas Polar believes that a healthy environment is essential for Venezuela, and participates actively in conservation programs on a nationwide scale. For example, the water treatment plants installed at Polar's breweries are the most advanced available anywhere today. The company's water treatment plant in Caracas, utilizing an anaerobic purification system, is the first of its kind to be installed in Latin America. The outlook The future performance of Empresas Polar clearly is linked to the evolution of the Venezuelan economy. The company believes that Venezuela, with its vast resources and great potential, will initiate a period of steady economic growth and social progress during the next few years. As a result of its diversified business strategy and strong management team, Polar is well-positioned to face future challenges and take advantage of new opportunities. The country possesses a series of important comparative advantages. Among them are: - A privileged geographical location. Through ports on the Caribbean, Venezuelan exports have direct access to markets in the United States, Central America and the Caribbean region. They also can reach European markets easily via transatlantic routes and have access to the Pacific Basin through the nearby Panama Canal. - Venezuela possesses petroleum reserves that rank among the world's largest: over 58 billion barrels of oil and 19 billion barrels (equivalent) of natural gas. - Vast mineral reserves - iron ore, bauxite, gold and others - as well as great hydroelectric potential are found in Venezuela's Guayana region. The country has built a major industrial complex in this area which includes steel and alhminum plants, one of the world's largest hydroelectric dams and other facilities, all of which are located near the Orinoco river. - Sixty percent of the country's population is under 24 years of age. This young, emerging work force can be easily trained to meet new development priorities. - Venezuela possesses a corps of well-educated young managers with international experience. This generation will provide the executive talent for future economic expansion. As a result of these and other positive elements, Empresas Polar believes that Venezuela is standing at the threshold of a most promising future, and that the 1990s will be a period of new and sustained economic and social progress. And Empresas Polar will continue to play an important role in Venezuela's national life, just as it has done during the first half-century. Polar's Business Philosophy The company's most important asset is its human resources. Stress on professional management, merit-oriented promotions and the training and integration of young personnel. The needs of the consumer and the community are the main focus of Polar's activities. Polar makes only the highest quality products. A fundamental element in Polar's financial policy is the reinvestment of profits. The company is dedicated to preserving the country's natural resources and attempts to create a harmonious relationship between its industrial operations and the surrounding environment. For general enquiries about Empresas Polar, please contact: Inversiones Polar, C.A. Edificio Centro Empresarial Polar 2da. Avenida con 4a. Transversal Urbanizacion Los Cortijos de Lourdes Caracas, Venezuela Telephone (582) 239 9933 or 239 5622 Telex 24637 POLAR VC Fax (582) 203-3055 Mailing Address: Apartado Postal 2331 Caracas 1010-A, Venezuela Venezuela Keeps Its Promises Last year we came to Davos to say what we felt should be done to improve the Venezuelan economy. One year later, we would like to present the changes we have, in fact, carried out. There is a new economic climate in Venezuela which we feel is very attractive to foreign investors. Our economy is opening to them. Our economic adjustment program can be divided into three main phases which overlap and complement one another. First, there was the need for adjusting relative prices in the economy to set the basis for the development of market forces and to free the economy. Second, there is already under way a process of institutional reform and modernization of the economy which includes the redefinition of the role that the public sector plays in our economy as well as reforms in the commercial, fiscal and financial areas. This will lead us to the third phase when the economy should follow a path of sustained economic growth, with low inflation. As far as the first phase is concerned, which began in mid-February 1989, we have been restoring the equilibrium of our economy, thus putting our house in order as the basis for new growth and progress. A new sound monetary policy is correcting the earlier imbalances in Venezuela's monetary system, exchange controls have been eliminated and a unified free-floating rate established for the Bolivar. From a system of administered interest rates, which produced very negative real-interest rates in the past, we have moved to a system that ensures positive real-interest rates. This new system is contributing to increased savings and discouraging capital outflows and, therefore, keeping our monetary system in balance. Another basic element of our adjustment program is price liberalization and the elimination of subsidies. These reforms will put the economy on a realistic basis which reflects market costs. Finally, our program aims to gradually reduce the fiscal deficit until it is totally eliminated. To these elements - free exchange, positive interest rates, price liberalization, reduction of the fiscal deficit - we have added a plan to fight inflation that will bring our prices into satisfactory equilibrium. Bringing down inflation is a definite goal of the new monetary policy, which limits liquidity to the real needs of the economy. We intend to cut inflation very drastically in 1990 and have a balanced economy and price structure so that Venezuela can grow without inflation. The results have already been satisfactory. From a monthly price-increase high last March of 21.3%, inflation dropped to 13.5% in April, 6.4% in May, 3.2% in June, 2.2% in August and 1.3% in November. In conjunction with the adjustment phase, we have already entered the second phase of our program - institutional reform and the modernization of the economy. Its goal is to reform the State and the electoral system, for a better democracy, and to reform public administration and privatize a number of its important activities. We have also begun to abandon worn out approaches such as excessive protectionism and import substitution. Our new policy seeks to create a competitive and healthy economy capable of producing efficiently for export as well as for the domestic market. The work for a comprehensive reform of our financial system has also begun. Fiscal reform is another important part of this phase of which its three most significant elements include a simpler and more rational tax system, avoiding decapitalization and a change from the needs of an import economy to what will be fundamentally an export economy. Another important development which I think worthy of mention is the fundamental change in attitude toward investment. There is a new realization that, for our development needs, we must attract significant foreign investment and maintain close contact with the great centers of new technology. We hope that the third phase, which is the decisive one, will be under way by the end of 1990. This is the phase of development, of growth without inflation, of building on a new and solid basis. Now is the time when we must make the most of the new investment environment, the new sources of funds and the possibility for multiple bilateral accords with the industrialized nations. The foreign investment community is responding to our progress. Already in November, the results of our first auction for debt conversion were most encouraging: US$150mn was auctioned, producing an average discount of 43.75%. By the end of 1990, we intend to have an economy basically in balance and ready for take-off. Grupo CNV, C.A. GRUPO CNV, C.A., is the holding company of the largest Venezuelan industrial complex dedicated to the manufacture of cast steel and cast iron valves for the oil, petrochemical and process industries, as well as other cast steel products. It is organized through the iniciative of a group of individuals, imbued of a mission and ethical values, that constitute the guidelines and governing principles of all companies of GRUPO CNV. Our mission is strictly associated with the repercussion of our presence in society at large and the contribution that, as a part of society, corresponds to us in the betterment of the living conditions. Our workers are the zenith of our ethical values. We stem from the idea of a human and integral organization in which all of the workers (managers and employees in general) are the essence of our mission. In accordance with our mission and the ethical values that inspire us, we give priority to the client and his needs. Our organization, therefore, has the best physical facilities, and the most demanding quality control systems. We, similarly, make the greatest efforts to render good delivery services, technical assistance and general attention to the client. We are in constant pursuit of productivity, and of our capacity to propose the better prices. The affiliates of GRUPO CNV are: Constructora Nacional de Valvulas, C.A., Acerias Iberovenezolanas, C.A. (ACERVEN), Valcontrol, C.A., CNV Mercadeo, C.A., CNV USA, Inc., and CNV Europa, S.A. (It also owns part of FMC Wellhead de Venezuela, a major supplier of wellheads and christmas trees.) CONSTRUCTORA NACIONAL DE VALVULAS, C.A. It manufactures cast iron and cast steel (including stainless and alloy) gate, globe, check, and ball valves. Diameters range from 2" to 36" and pressures, from 125 to 1500 pounds. Constructora Nacional de Valvulas is the major supplier of cast steel valves of the Venezuelan oil and petrochemical industries. Production and products conform to American Petroleum Institute (API) standards and specifications. The quality assurance system of the company has been approved by API, Intevep (an affiliate of Petroleos de Venezuela), Ecopetrol (Colombia), Isla Refinary (Curacao, Netherlands Antilles), and Petroleos Mexicanos (Mexico). Constructora Nacional de Valvulas has a share capital of US $16,000,000. Its manufacturing facilities (the most modern in Latin America) have assets in excess of US $20,000,000. The production capacity is of 5000 tons per year. The facilities of the company cover an area of 215,000 square feet. ACERIAS, IBEROVENEZO LANAS, C.A. (ACERVEN) It is the largest cast steel foundry in Venezuela, and one of the most important in Latin Americana. ACERVEN produces all castings for Constructora Nacional de Valvulas and Valcontrol. It also manufactures for the wellhead and christmas tree plants, as well as for the aluminum, cement, construction, mining, transportation and other industries (including paper, steel, and sugar mills). The quality assurance system has also been approved by Intevep. ACERVEN has a share capital of US $16,000,000 Its assets exceed US $22,000.000. Production capacity is of 8000 tons per year. The facilities of ACERVEN cover an area of 807,000 square feet, 250,000 of which are under roof. VALCONTROL, C.A. Valcontrol is a joint venture with Leslie Controls, Inc. of the US GRUPO CNV owns 51%. The company is specialized in control valves. Its quality assurance system has similarly been approved by Intevep. CNV MERCADEO C.A CNV Mercadeo is responsible for the marketing and sale of the products manufactured by other affiliates of GRUPO CNV. It has offices in Caracas, Ciudad Ojeda, Ciudad Guayana, and Puerto La Cruz in Venezuela, a representation office in Bogota, Colombia, and the supervision of CNV USA., INC. CNV USA, INC. CNV USA, Inc. is a US corporation with head offices in Houston, Texas. It is in charge of marketing and sale of Constuctora Nacional de Valvulas and ACERVEN products in the US market. It is now organizing warehouse facilities in Houston, Texas. CNV EUROPA, S.A. CNV EUROPA is a Spanish corporation with head offices in Madrid, Spain. It is responsible for the marketing and sale of products of Constructora Nacional de Valvulas and ACERVEN in the E.E.C. countries. It has warehouse, assembly, and testing facilities in Spain. For further information, please contact: Mr. Jose Maria Devis Director General CNV Mercadeo, C.A. Apartado Postal No. 61302 Caracas, Venezuela Tel (582) 918808-917042-918757 Telefax (582) 914535 Telex 23121 CNVCA or Mr. Rafael Pittaluga General Manager CNV USA, Inc. 01700 Northwest Freeway Suite 450 Houston-Texas 77092 USA Tel. (713) 9732815-9732816 Telefax (713) 4648274 or Mr. Fernando Matas Director General CNV Europa, S.A. Paseo de la Habana No. 169, Apto 304-B Madrid 28036, Spain Tel (341) 4572900 The Complete Financial System Since its foundation in 1950, Banco Latino, CA has grown steadily to become one of Venezuela's most solid banking establishments. It now has a network of agencies throughout the country and, through its related enterprises, constitutes a truly global financial system. Aptly called "El Banco de Hoy" (The Bank for Today), Banco Latino's organization and facilities have been fully adapted to the requirements of a growing market, making optimum use of the most advanced technology. Today, Banco Latino is in a position to cover all the varied areas of economic activity, thus giving substantial impulse to the nation's development. The Latino financial system is made up of a growing and powerful group of 17 financial institutions, each with its own area of expertise: Banco Latino, Banco Latino International Miami, Banco Latino N.V. Curacao, Latino Group Financial Association, Occidental Mortgage Bank, Eastern Mortgage Bank, Latino Financial Center, Almalatin Warehousing, Latino Investment Consortium, Latino Assets Fund, Latimar International Marketers, Latino Real Estate Investments, Latimer Investments, Vigibanca, Servareca, Informatica Onital and VISA-Banco Latino. From computerized services to offshore banking, this global system, known by its generic name Latino, can fulfill every possible banking need of both domestic and foreign customers. Venezuelan economic life has always been characterized by its intense foreign trade. Today, when Venezuelan companies are making increased efforts to position nontraditional products in foreign markets, efficient international services are more vital to businessmen than ever. Banco Latino's long history of relations with international banks and the prestige and trust we have earned help meet our clients' every requirement as far as security, efficiency and expeditiousness are concerned. Similarly, as foreign investors begin to respond increasingly to Venezuela's new commercial and monetary policies and to the many opportunities on offer in our country, Banco Latino is ready and waiting to offer its experience and expertise to make their investments 100% successful. A Secure Source For The 1990s The Venezuelan petroleum and petrochemical industry certainly presents bright prospects for the future. As one of the few oil producing countries with long-term reserves, Venezuela will continue to be a reliable and secure supplier of oil and byproducts to the world's markets as it has been for the last 70 years. Its crude reserves of about 58 billion barrels place the country first outside the Middle East and the Soviet Union. Particularly noteworthy is the fact that Petroleos de Venezuela (PDVSA) has recently made the most important discovery of light and medium crude in the last 30 years. New drilling techniques developed by PDVSA's research and development center have allowed us to explore a geological structure in the northeastern part of the country which could ultimately rival Alaska's Prudhoe Bay. Initial results indicate the existence of giant accumulations of low-sulfur, high quality crudes that are well suited for the production of gasoline. Production from these highly prolific wells will reach almost 500,000 barrels per day in the early 1990s. Nevertheless, the magnitude of Venezuela's resource base can only be understood by considering the immense deposits of bitumen situated in the Orinoco Belt. These resources have been estimated at more than 150 billion tons, with recoverable reserves on the order of 35 billion tons, or 267 billion barrels of oil equivalent. It is worth emphasizing that this basin represents the largest known accumulation of hydrocarbons in the world that can be developed by conventional production methods. But Petroleos de Venezuela is not only an exploration, production and refining company. It is also involved in the marketing of its products overseas. From the late 1970s onward, PDVSA has followed an active downstream integration policy. All of our associations outside Venezuela in companies such as Citgo, Champlin and Unoven in the United States, AB Nynas Petroleum in Sweden, and Ruhr Oel GmbH in West Germany, were made with the aim of being part of a worldwide marketing system. For Venezuela, whose principal concern is to find a market for its crude oil, integration offers the assurance of a long-term stable outlet. To the consumers, whose concern is secure long-term supply, integration guarantees a permanent commitment of crude and by-products to the market which at the same time helps to stabilize oil prices. Of the 2 million barrels per day that we produce, only a small part, about 300,000 barrels, is sold as oil, whereas about 1.7 million barrels are either refined here in Venezuela or in our refineries abroad. Thus, most of the oil which leaves Venezuela ends up in our own refining system. PDVSA's subsidiary in charge of its petrochemical activities has developed a major expansion plan which will industrialize Venezuela's huge natural gas reserves - the eighth largest in the world. These reserves represent an additional 19 billion barrels of oil-equivalent and give Venezuela a distinct comparative advantage in the international petrochemical arena. Today, Petroleos de Venezuela, is one of the largest energy corporations in the world which has diversified into oil, gas, coal, bitumens and petrochemicals. In 1988, Fortune Magazine listed PDVSA as the 68th corporation worldwide in total sales, 21st in net profits and 111th in number of employees (45,000). Our corporate culture is based on productivity and our explicit commitment is to continue supplying the world's energy markets in a secured and reliable way. A Boost For Gas And Petrochemicals Pequiven's basic corporate aim is to promote business ventures in the petrochemical and associated chemicals sector in Venezuela and to participate in the development of such investment opportunities. Our present expansion program, which foresees investment of about $4 billion dollars during the next five years, will maximize present production capacity in our existing petrochemical facilities and expand capacity to meet the growing needs of the Venezuelan market, by installing new plants for products not yet manufactured in Venezuela. And, of course, we also focus on developing and taking full advantage of export opportunities. By 1994, Pequiven will have tripled the production capacity of its three petrochemical production complexes, from the current level of 3.1 million metric tons per year to 9.1 million tons in 1994. The recent inauguration of a sulfuric acid plant at our Moron Petrochemical Complex marked the completion of the first of the projects scheduled under this expansion plan. Pequiven is expanding two large petrochemical complexes: Moron, near Puerto Cabello on the north central coasts of Venezuela and El Tablazo, on the northeastern coast of Lake Maracaibo in the western state of Zulia. A third complex, the most ambitious project, is being developed in eastern Venezuela, close to a cryogenic natural gas separation plant. At our Moron complex, three joint ventures manufacture industrial chemicals destined for the Venezuelan market. These include products for water treatment and refrigeration systems and for the manufacture of detergents. Over in the west at El Tablazo, there are five joint ventures, producing olefin derivatives, mostly for the Venezuelan market, as well as ammonia and urea for export. The first plants to come on stream in our new complex in eastern Venezuela will also be joint ventures. They will produce MTBE (methyl-tertiary-butyl-ether) for export and methanol for both the export and Venezuelan markets. Pequiven has attracted a good number of big names in the petrochemical world. In some plants we have foreign partners such as Dow, Combustion Engineering and Olin of the US, Atochem and Orkem of France, Mitsui and Mitsubishi of Japan, and Ecofuel of Italy. In other plants we have either Venezuelan private partners or a combination of these and foreign participants. Pequiven judges each case on its merits and adjusts to the individual circumstances of each plant in project. Besides abundant natural gas resources, Venezuela has important reserves of other key raw materials, such as phosphates, salt and sulfur which are available at competitive prices. The country has a truly motivated and highly skilled work force and operating costs are low. Venezuela offers attractive conditions for foreign investors in the petrochemical sector: dividends may be remitted abroad and profits accruing to investors in new petrochemical projects are exempt of income tax for at least five years. Last but not least, besides our own market which shows a fast growing demand for petrochemicals, Venezuela has a privileged geographical position which provides easy access to markets in the Atlantic basin. All this makes me think that the Venezuelan petrochemical industry is heading toward an exciting future. Pequiven is continuously committed to achieving profitable growth in the most efficient manner, within the shortest possible time limit. As a profit-oriented corporation, we take pride in maximizing return on the investments made together with our joint venture partners. At the same time, we have the added satisfaction of knowing that our corporate successes represent a real contribution to our country's economy.