Rebel blasts in Mexico idle hundreds of firms
At least 4 states lose natural gas source in attacks on key pipelines

By MARION LLOYD
July 12, 2007, 11:51AM
Houston Chronicle

MEXICO CITY — Hundreds of companies, including multinationals such as Honda and Hershey's, shuttered operations temporarily on Wednesday after a shadowy rebel group claimed responsibility for a series of explosions of key petroleum pipelines.

Near-simultaneous blasts carried out just after 1 a.m. Tuesday in central Queretaro state cut off natural gas supplies to at least four states in central Mexico. The region was still reeling from a round of pipeline explosions July 5 in neighboring Guanajuato state.

"There can't be fewer than 800 or 1,000 medium and large companies affected," Victor Manuel Lopez, secretary of the National Industrial Chamber, told the Notimex news service. He estimated daily losses of between $5 million and $10 million due to the suspension of gas service, without including the impact on small businesses.

Among multinationals forced to freeze operations were Kellogg's Co., The Hershey Co., Honda Motor Co. and Nissan Motor Co., according to local news reports.

Monterrey-based Vitro SAB, a leading manufacturer of glass containers, reported that the shutdown of two of its factories would cost the company $80,000 a day.

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