Guardian Issues Response to Venezuelan Government after Seizure of Subsidiary
On August 1, 2016, Guardian Industries Corp. and its Spanish subsidiary Guardian Industries Navarra SL announced that the Venezuelan government had seized control of Guardian de Venezuela SRL. On Sept. 3, Guardian issued the following statement on the status of the seizure.
The Venezuelan government published a resolution on Aug. 19, granting a government-sponsored Special Administrative Board full authority to control and operate Guardian Venezuela, thereby reaffirming the government's expropriation of Guardian Venezuela and its assets. These actions by the Venezuelan government have been taken without the consent or involvement of Guardian or any of its affiliates and in violation of applicable investment treaties.
The Venezuelan government seized control of Guardian Venezuela when the company attempted to implement an orderly and safe cool-down of its glass melting furnace to protect the safety of its employees and the community in general, while otherwise continuing commercial operations. Float glass plants operate at extremely high temperatures, continuously, 24 hours a day, 365 days a year, throughout their operational life. All float glass plants must be temporarily shut down at the end of their operational life in order to undergo major repairs requiring specialized and technical expertise.
Contrary to what has been asserted by the Venezuelan government, Guardian Venezuela never abandoned or closed its operations.
Guardian has warned the Venezuelan government of the grave safety risks to plant employees and the community in general should it continue to operate the plant without completing major repairs.
Guardian and its affiliates cannot be responsible for the safety of employees or any liability or
damages resulting from the government's continued operation of the plant.
Should the Venezuelan government produce and sell glass from the plant, Guardian cannot be held responsible for product quality and will consider any use of Guardian's name, Guardian product names, or Guardian trademarks to be unauthorized and a misappropriation.
Throughout this process, Guardian and Guardian Venezuela have acted to protect the safety and best interests of plant employees and the community.
Guardian Industries Corp., Guardian Industries Navarra SL, Guardian de Venezuela SRL and their affiliates continue to reserve their rights under all applicable laws and treaties.
