Former Energy Minister Tellez To Join Petrochemical Firm Desc

Dow Jones Newswires 19jan01

MEXICO CITY -- Mexican conglomerate Desc SA said Thursday it will hire former Energy Minister Luis Tellez as executive vice president.

Desc said in a filing with the Mexican Stock Exchange that Mr. Tellez will assume his new post in March. He will form part of a new executive committee, which will report to the company's board of directors.

"The committee was created in response to changes in both the economic environment and the company," Desc said. "Its objective is to facilitate the decision-making and the management of Desc, which faces important challenges in increasing its profitability as well as in the detailed analysis of its portfolio of businesses."

Desc has interests in petrochemicals, auto parts, and food processing, among other businesses, but has performed poorly in recent years.

Mr. Tellez, who holds a doctorate in economics from the Massachusetts Institute of Technology, was energy minister from 1997 to 2000.

Mr. Tellez was one of the key designers and promoters of a coordinated reduction in crude exports between members of the Organization of Petroleum Exporting Countries and non-OPEC members such as Mexico, the world's fifth-largest oil producer.

The agreements led to a recovery of global oil prices following the 1998 slump. Mr. Tellez was also chief aide to former President Ernesto Zedillo from 1994 to 1997.

At 4 p.m. trading on the New York Stock Exchange Desc shares inched up 25 cents to close at $7.63. In October 1997, they were above $41.