Venezuela sends troops to U.S. glassmaker’s plants

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.