Kellogg Cereal Factory Seized by Venezuela After Closure

Published Date : May 16, 2018

Experts in Venezuela have sealed a plant claimed by the American cereal maker Kellogg. It comes after the firm reported it was taken out of the nation on account of the intensifying economic circumstance. President Nicolas Maduro, who has already blamed the US for pursuing economic war against his legislature, called the conclusion "completely illegal and unlawful ".He said the manufacturing plant had been given to employees and would proceed with production. Prior, workers had said they had been kept from entering the plant in the main city of Maracay on Tuesday.

"We've started legal procedures against the business pioneers of Kellogg's on account of their exit is illegal," Mr Maduro told cheering supporters in the main state of Carabobo. "I've taken the choice to handover the organization to the laborers all together that they can keep producing for the general population."

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Venezuela's battered economy has been hit by falling oil revenue and the plunging estimation of its currency, the bolivar. It additionally has one of the most astounding inflation rates on the planet. Kellogg is the most recent multinational to close or scale back tasks in Venezuela, referring to stringent currency controls, an absence of raw materials and rising inflation.

In 2016, Venezuela's government assumed control over a plant having a place with US-based hygiene items manufacturers Kimberly-Clark after it declared it was ceasing tasks since it couldn't gather raw materials.