Venezuela on Friday took control of a pasta factory owned by U.S. food giant Cargill, accusing the company of violating government-set regulations on the production of price-controlled food items.
Venezuelan Deputy Food Minister Rafael Coronado said that the control of the plant will remain with the state for a period of 90 days, adding that the government would reassess the situation after the said period.
"As the company is not complying with production regulations, we've declared the plant of public interest," Coronado said on state television. "Our job is to assure food security and to enforce production of regulated goods."
Coronado said that move to take over Cargill's pasta factory came after inspections revealed that the plant was violating government regulations by devoting 59 percent of its production capacity for producing food items that were not under price controls. He said that the regulations require the plant to devote 70% of its output for price-controlled items.
The latest move comes after Venezuelan left-leaning President Hugo Chavez had ordered the expropriation of a rice mill owned by Cargill in March, accusing the company of not producing and distributing rice at government-set prices.
Also, Venezuela had seized last week hundreds of supply boats and several oil service companies, including two American owned gas facilities. Chavez has also nationalized several private companies in the country, including plants and offices belonging to Mexican cement giant Cemex and the massive Orinoco Belt oil projects.
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