Salem Radio Network News Wednesday, May 23, 2018

Business

Venezuela reactivates Kellogg plant after company pullout

CARACAS (Reuters) – Venezuelan authorities said they were reactivating a Kellogg Co <K.N> plant under worker control on Wednesday, a day after the U.S. multinational food producer pulled out of the crisis-hit country.

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

On Wednesday, Aragua state Governor Marco Torres slammed Kellogg and guaranteed food production would continue.

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

“Yet, we’re here – in less than 24 hours.”

Millions in Venezuela suffer food and medicine shortages amid hyperinflation. 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.

Clorox <CLX.N>, Kimberly-Clark <KMB.N>, General Mills <GIS.N>, General Motors <GM.N> and Harvest Natural Resources are the most recent big names to pull out of Venezuela in the face of economic conditions.

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

(Reporting by Corina Pons and Vivian Sequera; Writing by Girish Gupta; Editing by Chizu Nomiyama and Steve Orlofsky)

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