Smurfit Kappa has confirmed that officials from the Venezuelan government have announced a temporary intervention at its subsidiary Smurfit Kappa Carton de Venezuela.
The packaging company said that this is part of a nationwide programme of inspections and audits at both locally and internationally owned companies, conducted by a number of government ministries and agencies.
The intervention allows for further inspections and audits covering areas such as tax, costs, pricing and employment practices.
Smurfit said that it is co-operating fully with the government officials, adding that it is "committed to operating its business to ensure the on-going supply of products and services to its customers".
Venezuelan Industry Minister Ricardo Menendez said that the surprise inspection of the plant in Venezuela's Carabobo state, revealed price increases of 166% for foodstuff packages and increases of 372% for other related products.
Venezuela's national assembly approved on November 19 the so- called enabling law, granting the government the power for one year to enact laws, such as limits on profits, without the oversight of congress.
Smurfit Kappa has about 41,000 employees in approximately 350 production sites across 32 countries and with sales revenue of €7.3 billion in 2012.