Venezuela crisis update:

Government seizes Kellogg cereal factory after closure

By Gill Hyslop contact

- Last updated on GMT

President Nicolas Maduro's government has handed Kellogg's factory to the workers. Pic: ©GettyImages/NatanaelGinting
President Nicolas Maduro's government has handed Kellogg's factory to the workers. Pic: ©GettyImages/NatanaelGinting

Related tags: Venezuela, Kellogg company, Cereals, Economy, Recession

Venezuelan president Nicolas Maduro’s government has seized the Maracay plant owned by Alimentos Kellogg S.A.

Earlier this week, the US cereal giant ceased operations in Venezuela due to the worsening economic situation,​ prompting the country’s government to seize control of it manufacturing plant in the western city of Maracay.

President Maduro deemed the move “absolutely unconstitutional and illegal”​ and handed to workers to continue production.

Maduro said the factory would now be “producing with the industrial working class.”

He told supporters his government has begun judicial proceedings against the business leaders of Kellogg.

The company is the latest multinationals to have ceased or curtailed operations in the oil-rich country amid hyperinflation, shortages and state-imposed price controls. Others include General Mills, Harvest Natural Resources, Coca-Cola, Bridgestone, Clorox, Colgate, Kimberly-Clark and General Motors.

President Maduro – who has been in office since 2013 – blames Venezuela’s problems on an “economic war”​ being waged by foreign governments and businesses.

Maduro is seeking re-election for a second term on Sunday.

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