Paper packaging company Smurfit Kappa Group on Thursday denied allegations made against its Venezuelan unit by the Venezuelan government.
Venezuela's state price control agency Sundde said on Tuesday the government had temporarily occupied the local unit and ordered immediate price adjustments for all its products.
The company, which has operated in the country since 1986, said it entirely refutes the allegations, made after two days of government inspections, and believes them to be without merit.
Smurfit Kappa said the unit, Smurfit Kappa Carton de Venezuela, represented less than 1% of its core earnings in the first six months of 2018.
It was announced earlier this week that the Venezuelan government had temporarily occupied the unit on the grounds that it has ‘abused its dominant position’ in the marketplace.
Sundde claimed that Smurfit’s Carabobo site, which produces cardboard, has impacted national producers with its prices.
According to the government, members of Smurfit Kappa’s workforce submitted multiple complaints, and as a result, the company was ordered to begin price adjustments immediately for all its products.
Concluding today’s statement, Smurfit Kappa said that it will continue to monitor the situation closely.
News by Reuters, edited by Checkout, additional reporting by Aidan O'Sullivan. Click subscribe to sign up for the Checkout print edition.