The authorities of Venezuela to hold the seized Smurfit Kappa plant in the next three months

  • The authorities of Venezuela to hold the seized Smurfit Kappa plant in the next three months
    Independent.t. E.
    Smurfit Kappa confirmed that the Venezuelan government took control of the plant in the country for more than 90 days, which will increase concerns that the object may be fully nationalized.
    https://www.independent.ie/business/world/venezuelan-authorities-to-hold-seized-smurfit-kappa-plant-for-three-months-37264915.html
    https://www.independent.ie/business/article37264914.ece/3ed01/AUTOCROP/h342/2018-08-30_bus_43670713_I1.JPG

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Smurfit Kappa confirmed that the Venezuelan government took control of the plant in the country for more than 90 days, which will increase concerns that the object may be fully nationalized.

Two employees of smurfit Kappa in the country were arrested and are still being held by Venezuelan authorities.

Confirmation that the increasingly authoritarian government of Venezuela will manage the plant for three months, comes a week after the government first occupied the plant and ordered for the Irish company to reduce prices.

Two managers Smurfit Kappa detained last week were understood to remain under custody.

Two local employees of Irish firms were arrested and charged in what was described by authorities as “the crime of speculation, boycott, smuggling, mining, destabilization of the economy and corruption.”

Venezuela is slipping into a more severe economic and currency crisis.

In a statement yesterday Smurfit Kappa said it was “impossible” for businesses to manage their Affairs so that corresponds to the normal standards of doing business, as a result of actions of the Government.

“Consequently, as of August 28, 2018, Smurfit Kappa is not responsible for the use of its installations, machinery and equipment, security personnel, its surrounding communities, any impact on the environment, or the quality of the paper and packaging made in the operations” Smurfit Kappa said.

The company said it is making every possible effort to release their detained officers. The Irish independent understands that no Irish employees work at the plant.

Last week, the Venezuelan government issued a decree on the temporary occupation of the production units Smurfit Kappa cardboard in Carabobo state, for alleged abuse of dominant position.

Smurfit Kappa said last Thursday on the market that it “refutes” the charges against him.

“The group operates in Venezuela since 1986, according to the highest business and ethical standards,” Smurfit Kappa said, adding that the Venezuelan branch of the plant is part of the accounted for less than 1pc of its earnings before interest, tax, depreciation and amortization in the first half of 2018.

Nine of the 10 unions last week confirmed their support and desire to continue working with Smurfit Kappa.

(Additional reporting from Bloomberg)

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