Tuesday, July 12, 2016

Kimberly-Clark: Venezuela seizes and re-opens US-owned factory

This ALWAYS works out well (snark!)

The government of Venezuela has said it has seized a factory owned by the US firm Kimberly-Clark.

The firm had said it was halting operations in Venezuela as it was unable to obtain raw materials.

But the labour minister said on Monday that the factory closure was illegal and it had re-opened "in the hands of the workers".

Kimberly-Clark, which makes hygiene products including tissues and nappies, said it had acted appropriately.

Over the weekend it became the latest multinational to close or scale back operations in the country, citing strict currency controls, a lack of raw materials and soaring inflation.

General Mills, Procter & Gamble and other corporations have reduced operations in Venezuela as the country is gripped by economic crisis and widespread shortages of basic household goods.

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