The government of Venezuela has taken over 1,500 hectares of land owned by Smurfit Kappa in the country.
The company this afternoon confirmed that the area worth €500,000 has been seized.
In a statement, the firm said that its management in the South American country are in discussions with local authorities about the development.
Agriculture Minister Elias Jaua gave no assurances Venezuela would compensate the company, saying Smurfit would have to prove first that it was the real owner of the farm.
Earlier, a spokesman for the company was unable to say if the land had been seized as part of a renewed nationalisation drive of foreign-owned assets in the country.
Local media said the area seized was planted with eucalyptus which a government minister said benefited only Smurfit Kappa.
Smurfit is one of the world's biggest paper and packaging producers and has around 30,000 hectares in Venezuela.
Venezuelan president Hugo Chavez won a referendum three weeks ago changing the law to allow him to stand for office again.
Last night the Government seized a rice plant used by the US food giant Cargill.
The Government has also warned land owners they risk having their property seized if they reduce crop production.
