CARACAS, Venezuela - Venezuela's government has seized a factory belonging to Kimberly-Clark (KMB) after the U.S. personal care giant said it was no longer possible to manufacture in this crisis-wracked South American nation.
Labor Minister Owaldo Vera said Monday that the socialist government took the action at the request of the 971 workers at the factory that the company decided to shutter in central Aragua state.
Kimberly-Clark announced on Saturday that it was suspending production in Venezuela because of a lack of primary materials, currency trouble and soaring inflation. The company made a number of hard-to-find staples in Venezuela such as diapers and facial tissues.
"Kimberly-Clark will continue producing for all of the Venezuelans," Vera said in a televised statement from the factory surrounded by workers chanting pro-government slogans.
President Nicolas Maduro's socialist government accused Kimberly-Clark of failing to properly notify the government of its plans.
The Irving, Texas-based company did not comment Monday about Venezuela's actions.
Kimberly-Clark joins Bridgestone, General Mills (GIS) and Procter & Gamble (PG) and other multinational corporations in scaling back operations in Venezuela amid its economic crisis.
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