Venezuela seizes Kellogg cereal Mill Later Closing

Government in Venezuela have seized a plant owned from the American cereal manufacturer Kellogg.

It will come after the organization announced that it was withdrawing out of the united states because of the worsening financial situation.

President Nicolas Maduro, who’s accused the US of waging economic war against the government, named the closure “completely unprotected and prohibited”.

He said the factory had been handed to employees and would last manufacturing.

Formerly, employees had said that they had been prevented from going into the plant at the town of Maracay on Tuesday.

The statement comes in front of the elections of Sunday.

“We have begun judicial proceedings against the company leaders of Kellogg’s due to their exit is unconstitutional,” Mr Maduro told cheering supporters in the central country of Carabobo.

“I’ve taken the decision to deliver the organization into the employees to be able they can continue creating for its public”

Venezuela’s battered economy has been hit by falling petroleum revenue and the plummeting price of its currency, the bolivar. It also has among the top levels of inflation on the planet.

Kellogg will be the hottest multinational to close or cut back operations in Venezuela, citing strict money controls, a lack of raw materials and soaring inflation.

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It said it hoped to visit Venezuela in the near future and warned against sales of its brands “minus the voiced authorisation of their Kellogg organization”.

Back in 2016, Venezuela’s government took upwards of a plant belonging to oral hygiene products manufacturer Kimberly-Clark after it announced it had been quitting operations as it couldn’t acquire raw materials.

The Texas-based firm lately requested the beginning of arbitration proceedings against Venezuela in the World Bank.

President Maduro, that is in office since 2013, blames Venezuela’s problems within an “financial war” being waged by international governments and organizations. His critics say govt mismanagement would be the primary trigger.