Business Irish

Saturday 21 October 2017

Venezuela seizes Smurfit Kappa plant

Smurfit Kappa
Smurfit Kappa

Venezuela President Nicolas Maduro has temporarily taken over a packaging plant which makes container boards and solid packaging products, to investigate alleged price speculation.

Smufit Kappa has been accused of using its dominant position in the market to inflate prices.

The company said in a statement that it “retains management of the company and is co-operating fully with the government officials.”

Last month, Venezuela’s national assembly granted Mr Maduro the power to enact economic laws, such as limits on profits, without the oversight of congress for one year.

The former bus driver, who said that he would sign legislation today to limit car prices, last month used the military to occupy a chain of electronics stores for allegedly overcharging customers by as much as 1,200pc.

 “We are realizing the temporary inspection of this company in order to guarantee raw materials for the food chain and to guarantee the supply of food products,” Industry Minister Ricardo Menendez said on state television last week, referring to the Smurfit facility.

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