Venezuela hands over closed Kellogg factory to its workers

VENEZUELAN authorities said they had handed a Kellogg factory to workers and reactivated production yesterday, a day after the US cereal producer pulled out of the country.

Kellogg joined a host of other multinationals in exiting Venezuela and later confirmed that Nicolas Maduro’s Leftist government had taken over its manufacturing plant.

Yesterday, Marco Torres, the Aragua state governor, criticised Kellogg and guaranteed that food production would continue.

“With no notification, this Us-based multinational decided to close its doors, leaving 570 workers hanging,” said Mr Torres at the plant in Maracay.

“Yet, we’re here – in less than 24 hours.” Millions of people in Venezuela suffer food and medicine shortages amid hyperinflation. Mr Maduro blames Venezuela’s crisis on an “economic war” that he says is being waged by Washington, greedy businessmen and coup-mongers.

He is expected to win Sunday’s presidential election, described by the opposition as a sham – who also put the blame for the economic crisis squarely at Mr Maduro’s door, citing corruption and mismanagement. Clorox, Kimberly-clark, General Mills, General Motors and Harvest Natural Resources are the most recent big names to pull out of Venezuela in the face of worsening economic conditions.

Opposition critics scoffed that the government would quickly plunder the Kellogg plant and ruin its business.

Kellogg has not given more detailed information on the difficulties it was facing, but companies have been struggling to find raw materials and cover their production expenses, as the government does not allow companies to raise prices in order to cope with the country’s hyperinflation.

“The current economic and social deterioration in the country has now prompted the company to discontinue operations,” Kellogg said.

Mr Maduro used a campaign rally to call the action “absolutely unconstitutional and illegal” and said the workers would take over so that “they can continue producing for the people”.

During a speech in the state of Carabobo on Tuesday, Mr Maduro also said that he had begun judicial proceedings against the company’s business leader.

While the Texas-based company said it hoped to return to Venezuela in future, it also warned of legal action if its product is sold there in the meantime.