VENEZUELA: Government To Take Over Kimberly-Clark Facility

The Venezuelan government has said it will revive and run a local production plant owned by Kimberly-Clark.  Last week, the US manufacturer had said it was stopping operations in the country as it could no longer source raw materials.

However, Labor Minister Oswaldo Vera told state TV that the government will now operate the plant in city of Maracay. He added: “Kimberly-Clark is going to continue producing, now in the hands of the workers. We’ve just turned on the first engine.”

K-C responded to the move by noting: “If the Venezuelan government takes control of Kimberly-Clark facilities and operations, it will be responsible for the well-being of the workers and the physical assets, equipment and machinery in the facilities going forward”.

K-C’s announcement was the latest in a string of moves by international producers, who have been forced to cut down or exit local production due to power shortages, soaring inflation, and lack of easily available commodities.