CARACAS, (Reuters) – Venezuela sent troops to two plants owned by U.S. bottle maker Owens Illinois yesterday after President Hugo Chavez ordered nationalization of the company’s operations on charges of environmental crimes and exploiting workers.
Owens Illinois stock fell nearly 6 percent after the socialist leader’s televised address on Monday night in which he expropriated the plants.
“There are military personnel on the scene at each of the plants,” said Owens Illinois spokeswoman Stephanie Johnston. She said the soldiers were outside and operations had been unaffected.
The company said on its website, www.o-i.com, that it was “surprised to learn of the decision, and we are prepared to work with government officials to better understand the situation.” Owens Illinois has operated in Venezuela for more than 50 years and employs more than 1,000.
It said Venezuela represents less than 5 percent of its global segment operating profit. During 11 years in power, Chavez has brought a large part of the economy under government control, including major oil installations owned by foreign companies. Venezuela is South America’s leading oil exporter.
He has ordered nationalization of companies linked to food and beverage production since last month’s elections reduced his party’s majority in parliament.
Many Venezuelans believe the recent takeovers are intended to pressure Empresas Polar SA, Venezuela’s top private employer and largest brewer and food processor. Polar uses Owens Illinois’ bottles for beer and beverages. Chavez has long threatened to nationalize Polar.