Costa Rican aluminium processor Alunasa, a subsidiary of Venezuelan state heavy industry holding CVG, may be shut down by Venezuela's President Hugo Chavez because of differences with his Costa Rican counterpart Oscar Arias, press from both countries reported.

The reports said that Chavez was upset by President Arias' statements that the special powers recently granted to the Venezuelan leader were "the antithesis of democracy."

In response, Chavez has reportedly decided to move Alunasa to a different country in Central America and has ordered the immediate suspension of aluminium shipments from Venezuela.

However, the presidential press office in Costa Rica's capital San Jose has not received any official communication and therefore has no comment on the issue, reports said.

Alunasa employees have sent a letter to Arias expressing their concern about the news.

On February 4, Venezuela's national assembly (AN) awarded President Chavez the ability to rule by decree in a wide range of areas via a new enabling bill.

Chavez asked the AN to pass the bill last month, just before being sworn in for a new term of office. However, the extent of the powers granted under the new bill is still unknown.

Alunasa is located in Costa Rica's Puntarenas province and manufactures nearly 9,000t/y of rolled and semi-finished aluminium products with aluminium supplied by Venezuelan company Alcasa, also a CVG subsidiary.