The Dutch subsidiary of Owens-Illinois (O-I), OI European Group B.V. (OIEG), has won an international arbitration against Venezuela as a result of the country nationalising two of its plants in 2010.
OIEG has been awarded more than $455 million for what has been deemed Venezuela's unlawful expropriation of OIEG's two plants, although it remains unsure as to when it will receive payment.
The award was issued by a tribunal from the International Centre for Settlement of Investment Disputes.
International law requires Venezuela to pay OIEG the amounts due, although the country is in the midst of a severe recession and may seek to annul or delay the payment.
The company has said that if Venezuela fails to meet its obligations, OIEG will seek to enforce the award against Venezuela's assets around the world or find alternative measures of redress.
The tribunal found that Venezuela violated its obligations under a 1991 bilateral investment treaty between the Netherlands and Venezuela, and awarded OIEG more than $372 million in compensation plus interest which, calculated to date, exceeds $84 million.
The tribunal also awarded costs and legal fees to OIEG.
"As the tribunal found, Venezuela expropriated very valuable assets, which were the result of more than half a century of hard work and commitment by O-I employees and for which the country now has to compensate O-I," said Al Stroucken, O-I chairman and CEO.
"We hope that the plants continue to benefit our former employees and the Venezuelan people."
