Venezuela: "Nationalization" of failed enterprises
The following news item, from last year, comes to us courtesy of the Marxmail list. Two tomato processing plans, both owned by an imperialist enterprise in the US. Guess which one the chavistas seized.
Seizing Heinz ketchup-chavista style
Posted on Tue, Sep. 06, 2005
Heinz Venezuela seeks takeover clarity
Associated Press
CARACAS, Venezuela - A Venezuelan subsidiary of U.S.-based food maker H.J. Heinz Co. on Tuesday asked the government to clarify a decision to seize one of its tomato processing plants.
Alimentos Heinz CA, which makes Heinz ketchup, said the government never notified the company of any plans to take over the plant.
The governor of eastern Monagas state, Jose Gregorio Briceno, ordered troops to seize the plant, aiming to protect it from looters and eventually put it to use because it has been idle for years, spokeswoman Angelica Rivero said Monday. It was not immediately clear when the plant was seized.
"We hope the reasons for these actions are clarified since the company has received no notice from the authorities about the intervention/expropriation," Alimentos Heinz said in a statement Tuesday.
The company said the government's "social objectives cannot stand above the law."
The plant was not functioning because the market demand and the price were not enough to make it feasible to keep the unit running, the company said. An official at the Pittsburgh-based food company said the move will not affect Heinz's ability to do business in Venezuela.
"Heinz has a major plant in Venezuela employing 700 people that is not affected by this action. We see this as a local issue," said Ted Smyth, chief administrative officer.
He said the company was awaiting the government's next step regarding the plant, which hadn't been used for at least eight years and never employed more than 50 people.
Officials were expected to expropriate the plant, a move that would require the Venezuelan National Assembly to declare the property to be of "public interest."
Venezuelan President Hugo Chavez has said the government may expropriate the property of companies whose factories are idle or partially paralyzed in order to put them back to work.
So far this year, the government has expropriated the assets of a failed paper company and an industrial valve maker.
Seizing Heinz ketchup-chavista style
Posted on Tue, Sep. 06, 2005
Heinz Venezuela seeks takeover clarity
Associated Press
CARACAS, Venezuela - A Venezuelan subsidiary of U.S.-based food maker H.J. Heinz Co. on Tuesday asked the government to clarify a decision to seize one of its tomato processing plants.
Alimentos Heinz CA, which makes Heinz ketchup, said the government never notified the company of any plans to take over the plant.
The governor of eastern Monagas state, Jose Gregorio Briceno, ordered troops to seize the plant, aiming to protect it from looters and eventually put it to use because it has been idle for years, spokeswoman Angelica Rivero said Monday. It was not immediately clear when the plant was seized.
"We hope the reasons for these actions are clarified since the company has received no notice from the authorities about the intervention/expropriation," Alimentos Heinz said in a statement Tuesday.
The company said the government's "social objectives cannot stand above the law."
The plant was not functioning because the market demand and the price were not enough to make it feasible to keep the unit running, the company said. An official at the Pittsburgh-based food company said the move will not affect Heinz's ability to do business in Venezuela.
"Heinz has a major plant in Venezuela employing 700 people that is not affected by this action. We see this as a local issue," said Ted Smyth, chief administrative officer.
He said the company was awaiting the government's next step regarding the plant, which hadn't been used for at least eight years and never employed more than 50 people.
Officials were expected to expropriate the plant, a move that would require the Venezuelan National Assembly to declare the property to be of "public interest."
Venezuelan President Hugo Chavez has said the government may expropriate the property of companies whose factories are idle or partially paralyzed in order to put them back to work.
So far this year, the government has expropriated the assets of a failed paper company and an industrial valve maker.
posted by Yosef Mikhah @ 10:24 AM
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