Irish company Smurfit Kappa Group Plc is a major cardboard packaging company.
Chavez said that the government had intervened in the 3,700 acre El Pinal farm because the water-hungry eucalyptus trees were drying out local rivers.
He said the government would replant the farm.
'We have intervened in Smurfit,' Chavez said.
'We are going to use this wood in a rational manner and then we will change the vocation of the land; we are going to plant other things that are not eucalyptus.'
Earlier this week Chavez nationalised a rice mill owned by giant US food company Cargill Inc and has sent troops to other rice mills in a drive to control supplies of the grain.
