Over the weekend the Venezuelan government temporarily intervened at Smurfit Kappa’s subsidiary in the country, Smurfit Kappa Carton de Venezuela (SKCV) by occupying the subsidiary. It was reported that the government are looking to launch an “economic offensive” in order to increase support among voters in the country ahead of elections given the chronic inflation that is being felt in the country. <p>
The Venezuelan Industry minister said that Smurfit Kappa had increased prices by 372% in the last year.
This morning, Smurfit Kappa released a statement concerning the recent events in Venezuela noting the government’s intervention that management point to being part of a nationwide programme of inspections and audits or both locally owned and international firms. Smurfit Kappa is co-operating with the government’s inspections which are focusing on the areas of tax, costs, pricing and employment practices. <p>
For FY 2012, the Americas region, of which Venezuela falls in to, made up c.15% of Smurfit Kappa’s revenue.
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