Following Kimberly-Clark‘s announcement this weekend that it would cease manufacturing in Venezuela, the local government has said it will seize the factory from the maker of personal care and tissue products. K-C said it could no longer source primary raw materials or combat soring inflation in Venezuela.

Venezuelan president Nicolas Maduro is accusing the maker of Huggies diapers and Kotex feminine hygiene items of participating in an international plot to damage Venezuela’s economy. He said his socialist government would provide public funds to the workers at the plant.

His remarks followed a statement by labor minister Owaldo Vera who said the government’s takeover of the Kimberly-Clark factory comes at the request of the 971 workers who occupy the plant located in the central Aragua state.

“Kimberly-Clark will continue producing for all of the Venezuelans,” Vera said in a televised statement from the factory surrounded by workers chanting pro-government slogans.

Speaking on television and radio, Maduro also announced that U.S.-based Citibank, which has handled some of the state’s international transactions, notified authorities that it would close the accounts of the Central Bank of Venezuela in 30 days. He linked both actions to the economic war on Venezuela, calling it “the new imperialist inquisition” of U.S. President Barack Obama.

The Irving, TX-based company said Monday that it acted appropriately in suspending operations.

“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,” the company said in a statement.