Venezuela takes over suspended US company

    Venezuela takes over suspended US company

    July 12, Caracas: Venezuela is taking over and reactivating a factory belonging to US company Kimberly-Clark, after the consumer products giant announced last week it was suspending operations because of the country's deteriorating economic situation, officials said.

    Speaking on state television on Monday, Venezuelan Labour Minister Oswaldo Vera said President Nicolas Maduro had ordered the seizure of the plant at the request of its 1,200 workers.

    He said the government would supply the raw materials the plant needed to operate.

    According to state television report, Kimberly-Clark, which manufacturers a series of products, including facial tissue, toilet paper and diapers, announced on Saturday that it was halting production in Venezuela's northern Aragua region because of a lack of hard currency and raw materials.

    Bridgestone, General Mills, Procter & Gamble and other multinational corporations have also reduced operations in Venezuela amid a deepening economic crisis.

    Kimberly-Clark y said on Monday that it had acted appropriately in suspending operations.

    The Texas-based company said in a statement said: "If the Venezuelan government takes control of Kimberly-Clark facilities and operations, it will
    be responsible for the well-being of the workers and the physical assets, equipment and machinery in the facilities going forward."

    Maduro accused Kimberly-Clark of participating in an international plot to damage Venezuela's economy.

    Venezuela has been mired in an economic crisis that has emptied shop shelves and created shortages of food, medicine and household supplies.

    The Oslo Times International News Network