Food and Beverages Industry News Sample

Sep 30, 2005 17:00:27

H.J. HEINZ: Government to Pay $255,814 for Plant Seizure

MONAGAS, Venezuela (SunStream News) -- Alimentos Heinz, a unit of H.J. Heinz Co., agreed to receive from the government VEB550 million (US$255,814) as payment for an inactive tomato processing plant seized a few weeks ago by government troops. Dow Jones Newswires suggests the Company originally demanded as much as VEB1.1 billion for the plant located in the Northeastern state of Monagas.

Earlier this month, Monagas governor Jose Gregorio Briceno ordered the military to seize the plant to protect the plant from looting.

Heinz officials have said they understand the government's social plans but pointed out that its "social objectives cannot stand above the law."

Venezuelan President Hugo Chavez has vowed to fight for the rights of workers left jobless by company shutdowns. Idle land and company assets, Mr. Chavez has warned, could be declared as "public interest" and expropriated.

Heinz explained earlier that the Monagas plant hasn't been operating because market demand and low prices make it impossible to keep the unit producing.

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Source: Troubled Company News -- Latin America

Publication Date: 2005-09-30

 

COY:	HNZ

IND:	FOD

GEO:	s-ve

 

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