The government of Venezuelan president Nicolas Maduro has temporarily taken over a packaging plant in Valencia owned by Smurfit Kappa Group, the manufacturer of container boards and solid packaging products, for alleged price speculation.

The surprise inspection of the plant in Venezuela's Carabobo state, revealed price increases of 166 per cent for foodstuff packages and increases of 372 per cent for other related products, industry minister Ricardo Menendez said on state television. He said the increases occurred between January 2012 and this month.

'Raw materials'
"We are realising the temporary inspection of this company in order to guarantee raw materials for the food chain and to guarantee the supply of food products," Mr Menendez said.

The company could not be contacted for comment last night.

The price increases were denounced by representatives from various multinational chains across Venezuela, according to statements from the Venezuelan government which faces municipal elections on December 8th.

Quarterly revenues
Smurfit reported a 10 per cent increase in quarterly revenues last month on the back of strong European and South American sales.

The group’s operations in the Americas enjoyed a €141 million bounce in revenue and saw earnings increase by €35 million as a result of strong underlying volume and revenue growth throughout the region, in particular Venezuela.

Venezuela’s national assembly approved on November 19th the enabling law, granting Mr Maduro the power for one year to enact laws, such as limits on profits, without oversight of congress.– (Bloomberg)