Kimberly-Clark (K-C) has indefinitely suspended operations in Venezuela after it said it was “impossible” to manufacture there due to the country’s economic crisis.
The tissue giant said the move was in response to the “continued deterioration of the economic conditions in the country”.
All operations at the company’s office in Caracas, along with its mill and distribution centre in Maracay have been indefinitely suspended and K-C will no longer manufacture, market or sell its line of consumer goods and professional products in Venezuela while the suspension is in place.
The announcement was made on Saturday following years of a “lack of raw materials”, which in the last two months have caused the majority of its manufacturing lines to shut down, as well as the lack of availability of foreign exchange and soaring inflation.
“The combination of these factors make operating the company’s business impossible at this time,” the company added.
“K-C remains concerned for the safety of its former employees in Venezuela and 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.”
If conditions change, K-C said it will review its options regarding the viability of operating in Venezuela. It added that it remains committed to growing its remaining business in Latin America.