The Venezuelan government has temporarily taken over the paper packaging manufacturer Smurfit Kappa Group’s subsidiary, Smurfit Kappa Carton de Venezuela (SKCV) in Valencia, and arrested two of its managers after complaints about prices being charged by the company for its products. • None Read more: Two Smurfit Kappa managers arrested in Venezuela

The two arrested, who are understood to be local Venezuelan employees of the Irish firm, were arrested for allegedly engaging in what were described by authorities of the leftist and increasingly authoritarian regime as "crimes of speculation, boycott, extraction contraband, destabilising the economy, and corruption". Sundde said the people had been charged with price speculation, boycotting, destabilising the economy, and smuggling, and ordered the firm to immediately adjust its prices for all its products and accused the company of refusing to sell to certain local businesses. "The group has operated in Venezuela since 1986 to the highest business and ethical standards," Smurfit Kappa said, adding that the Venezuelan subsidiary of which the factory is part represented less than 1pc of its earnings before interest, tax, depreciation and amortisation in the first half of 2018. It has denied the government’s accusations and stated that, as a result of the actions, it would not be held responsible for its operations in the country while under state control, which the government has said is temporary and would last for 90 days. "Consequently, as of 28 August 2018, Smurfit Kappa is not responsible for the use of its installations, machinery and equipment, its employees’ safety, that of its surrounding communities, any environmental impact, or the quality of the paper and packaging manufactured in the operations." In its statement on Wednesday, Smurfit confirmed the government had taken control of Smurfit Kappa Carton de Venezuela for 90 days and said the company was making all possible efforts to secure the release of its two employees.
Irish paper production and packaging firm Smurfit Kappa release a statement explaining that one of its production facilities was seized a week earlier on August 21 by the Venezuelan government and its managers were arrested, with the company accused of not setting their prices at government-approved levels and smuggling. It says that the government have taken over operation of the plant.