Venezuela seizes Smurfit Kappa packaging plant

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Venezuela’s government steps up inspections at local and international companies to fight rising prices and shortage of goods.

The Government of Venezuela has temporarily occupied Smurfit Kappa Group’s (SKG) corrugated packaging plant in the city of Valencia. Venezuela’s Ministry of Industry announced on Saturday it has taken control of SKG’s local subsidiary to investigate price and cost development in the last twelve months and to guarantee raw materials supply to the food producing industry. Industry minister Ricardo Menéndez said, SKG has raised prices for some of its products by up to 362% since November 2012.

SKG confirmed that Venezuela’s government has announced "a temporary intervention at the Group’s subsidiary Smurfit Kappa Cartón de Venezuela (SKCV)”. The intervention was part of a nationwide programme of inspections and audits in the areas of taxes, costs, pricing and employment practices and the company was co-operating fully with the government officials, the Dublin-based paper packaging giant explained in today’s press release. The company added it was committed to ensuring regular supply of products and services to its customers.

The Ministry of Industry also announced that inspections of price changes and developments were progressing at Nestlé Venezuela, the food and beverage company Empresas Polar, and the glass container manufacturer Venvidrio.

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