Venezuela seizes Smurfit Kappa assets

THE Venezuelan government has seized control of paper packaging company Smurfit Kappa’s operations for alleged price fixing.

Smurfit Kappa, which is listed on the FTSE 100, has been operating in Venezuela for nearly 80 years and employs 1,600 staff there.

It has denied the accusations and said it would not be held responsible for its operations in the country while under state control, which the government said would last for 90 days. Two of Smurfit Kappa’s managers in Venezuela have also been detained.

Venezuela’s economy is in turmoil and hyperinflation, power cuts and severe food shortages have thrown the country into chaos.

Many multinational companies have left. The government has nationalised previously private industries and driven the country into crisis with harmful economic policies.

Venezuela accounts for less than 1pc of Smurfit Kappa’s annual profits before interest, tax, depreciation and amortisation.

A spokesman said: “The company has operated to the highest business and ethical standards, invested significant amounts of capital in its business, developed a highly progressive corporate social responsibility programme and dedicated significant financial support and resources to the education and health of the less privileged members of the communities in which the company operates.”