Venezuela Seizes Kellogg Cereal Plant After Company Announces Pullout

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Authorities in Venezuela have seized a plant owned by the American cereal manufacturer Kellogg. Kellogg's plant was taken over after it revealed that it was pulling out of the country as it continues to face a worsening economic and political situation.

"I've made a decision to hand the company over to the workers so that they can continue producing for the people", he said.

Maduro accused Kellogg of trying to sabotage his chances of getting re-elected in Sunday's presidential vote.

"We've begun judicial proceedings against the business leaders of Kellogg's because their exit is unconstitutional".

Kellogg's factory in Maracay, with a giant figure of Tony the Tiger lording over the entrance, employs around 550 people and produces 75 percent of the breakfast cereals Venezuelans consume, according to the company's website.

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Venezuela's battered economy has been hit by falling oil revenue and the plummeting value of its currency, the bolivar. It has one of the highest rates of inflation in the world.

Venezuela on Wednesday reactivated a Kellogg plant under work control, a day after the cereal maker joined an exodus of US companies from the crisis-wracked country.

The company said product distribution in Venezuela has been suspended and the license agreement for the use and commercialisation of its brands has been terminated.

At least one other US company had already threatened legal proceedings against the country when Venezuela took control of a plant once belonging to Kimberly-Clark and began making personal hygiene products.

The Texas-based firm recently requested the start of arbitration proceedings against Venezuela at the World Bank. He had previously accused the USA of waging an economic war against the government of Venezuela. His critics say government mismanagement is the chief cause.

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