The Venezuelan government has announced a 'temporary occupation' of a unit of paper company Smurfit Kappa, claiming that the business has 'abused its dominant position' in the marketplace.
The government's price control agency, Sundde, announced the occupation of the facility, located in Carabobo State, around two hours' drive from Caracas, on 21 August, following an inspection of the site by government officials.
Price Adjustments
The government claimed that the inspection followed 'multiple complaints' made by the workforce of the company, and ordered that Smurfit Kappa immediately instigate price adjustments for all its products.
Smurfit Kappa's Carabobo facility is involved in cardboard production, and the government accused the company of impacting national producers with its price positioning.
A government spokesperson described Smurfit Kappa as "the most important cardboard production company in the country", claiming that its "speculative practices have a direct impact on the people".
The government added that it was carrying out this action to 'guarantee the success of public policies' issued by President Maduro.
No comment has been given by Smurfit Kappa, according to Reuters.
Colombia Award
The occupation was announced on the same day that Smurfit Kappa's division in neighbouring Colombia was presented with a top award for its sustainability work.
The company was presented with the ‘Best Environmental Approach’ award at the Andesco Sustainability Awards, for its dedication to sustainably managed forests. It operates 44,000 hectares of commercial forestry plantations and 22,000 hectares of natural forests in the country, which are protected by FSC certification.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Picture sourced from Sundde website. Click subscribe to sign up to ESM: European Supermarket Magazine.
