Venezuela firm challenges seizure

President Chavez is set to expropriate more land and factories

One of Venezuela's biggest food companies, Alimentos Polar, has said it will appeal against an order to expropriate one of its plants.

Company president Lorenzo Mendoza ruled out negotiating with the Venezuelan government, which says the factory has been lying unused for three years.

President Hugo Chavez is stepping up a campaign to seize land and businesses which officials consider idle.

The US ambassador has warned that the seizures could affect trading links.

"What is happening will have an impact on the commercial decisions of private companies, not only those from the United States, but all the countries of the world," Ambassador William Brownfield told local radio.

'Operational'

The decree ordering the expropriation of silos belonging to Alimentos Polar in Barinas state was issued by Governor Hugo de los Reyes Chavez, the president's father.

We consider this decision unjust, disconcerting and in our opinion unconstitutional Lorenzo Mendoza President Alimentos Polar

He said the order was justified because productive activities had ceased in 2002.

But Mr Mendoza rejected such claims.

"These silos are operational... this is a plant that is being used and which guarantees food security," he said.

"We consider this decision unjust, disconcerting and in our opinion unconstitutional.

"We turn to the only recourse we have always used, the law, one that which will in the end bring justice, and have this ruling annulled by the competent legal bodies," Mr Mendoza said.

Under President Chavez, laws have been passed to allow the state to seize private land and industries if they are considered idle.

He has argued that greater control over Venezuela's industry is needed to stimulate production and ensure profits are kept within the country.