Boston, MA 09/29/2014 (wallstreetpr) – According to reports, The Clorox Co (NYSE:CLX) announced on Saturday that it had a lot of concerns about safety. The statement came after the Venezuela government decided to take-over its facilities. A few days back CLX announced that it would no longer operate here due to the economic crisis. As soon as the news went public, the local government decided to over-take all the facilities that CLX had.
Management Call:
After government’s decision, Jorge Arreaza, Vice President of The Clorox Co (NYSE:CLX) made an announcement from one of company’s facilities, which was located just outside the city. According to him, it was now a factory where workers liberated. It was live telecasted in TV right from the destination. He offered the complete support of the nation to a workers’ initiative in order to save close to 800 jobs. He said that the factory has ample material and chemicals; also, there were a lot of workers who knew what to do and how to do it.
Market experts don’t have high expectation from the economy of Venezuela and think that it would fall into a recession in the current year. Some of the main reasons behind this unexpected yet very big fall can be continually local currency depreciation and shortage of dollar in the local economy. Apart from that, rigid state controls also have played very important role in economic fall as they deter investments. The Clorox Co (NYSE:CLX) said on September 22, 2014 that it was looking forward to exiting from the country; hence, it was interested in selling out its assets as soon as possible. It said that over the last three years, it had to sell two third of total products at a significant loss due to local government’s failure to set feasible prices of its products in the local market. The prices set by government couldn’t cover cost of production completely.
