Statement re Venezuela

Statement re Venezuela

Smurfit Kappa Group PLC

Smurfit Kappa Group plc

SKG.I SKG.L

Dublin & London | 29 August, 2018: Smurfit Kappa Group plc (‘SKG’ or the ‘Group’) confirms that the Government of Venezuela has taken temporary control of Smurfit Kappa Carton de Venezuela’s (‘SKCV’, the ‘Company‘) business in Venezuela for a period of 90 days.

SKCV has been providing goods and services to its customers in Venezuela for almost 80 years giving employment today to almost 1,600 direct employees and many more indirectly. During that time the Company has operated to the highest business and ethical standards, invested significant amounts of capital in its business, developed a highly progressive Corporate Social Responsibility program and dedicated significant financial support and resources to the education and health of the less privileged members of the communities in which the Company operates. Nine of the ten Company unions last week confirmed their support and desire to continue working with SKCV as a result of our good labour practices and compliance with local laws and regulations.

As a result of this action by the Government of Venezuela it is impossible for SKCV to manage its affairs in a way that complies with our normal business standards. Consequently, as of 28 August 2018, SKCV is not responsible for the use of its installations, machinery and equipment, its employees’ safety, that of its surrounding communities, any environmental impact, or the quality of the paper and packaging manufactured in the operations.

In addition, the Government of Venezuela has detained two of our employees and we are making all possible efforts to secure their release.

SKG’s clear desire has been, and is, to continue operating a viable, sustainable and environmentally responsible business in Venezuela giving secure employment. In the event that the announced action continues, Smurfit Kappa Group is fully committed to protecting the interests of its stakeholders.

ENDS

Contact
Garrett Quinn Smurfit Kappa T: [phone] E: [e-mail]				FTI Consulting T: [phone] E: [e-mail]

About Smurfit Kappa
Smurfit Kappa, a FTSE 100 company, is one of the leading providers of paper-based packaging solutions in the world, with around 46,000 employees in approximately 370 production sites across 35 countries and with revenue of €8.6 billion in 2017. We are located in 22 countries in Europe, and 13 in the Americas. We are the only large-scale pan-regional player in Latin America.

With our proactive team we relentlessly use our extensive experience and expertise, supported by our scale, to open up opportunities for our customers. We collaborate with forward-thinking customers by sharing superior product knowledge, market understanding and insights in packaging trends to ensure business success in their markets. We have an unrivalled portfolio of paper-packaging solutions, which is constantly updated with our market-leading innovations. This is enhanced through the benefits of our integration, with optimal paper design, logistics, timeliness of service, and our packaging plants sourcing most of their raw materials from our own paper mills.

Our products, which are 100% renewable and produced sustainably, improve the environmental footprint of our customers.

Follow us on Twitter at @smurfitkappa and on LinkedIn at ‘Smurfit Kappa’.

www.smurfitkappa.com

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