July 20, 2021 - DS Smith on July 16 announced the proposed sale of its De Hoop paper mill (Eerbeek) in the Netherlands to De Jong Packaging for a cash consideration of EUR 50 million (approx. £43 million). The mill produces about 370,000 tonnes per year of mainly heavier grades of recycled paper.
As part of the agreement, DS Smith will continue to purchase from and supply to the paper mill a certain amount of containerboard and fibre in support of a smooth and orderly transition.
"The sale supports our strategy to have a "short paper" position in Northern Europe where there is a greater amount of external paper capacity available to the Group and also further aligns our internal paper production with our priorities in light-weight fibre-based packaging solutions for FMCG and e-commerce customers," DS Smith said in a written statement.
"The proceeds will be used to partly offset this year's enhanced investment in packaging capacity, with new greenfield corrugated box plants in Italy and Poland, and a significant expansion of our Arnstadt packaging facility in Germany," the company added.
Completion of the sale is subject to customary closing conditions including works council consultation and expected to take place in the second quarter of DS Smith's fiscal year 2021/22.
Headquartered in London, DS Smith is a leading provider of corrugated packaging, supported by recycling and papermaking operations. To learn more, visit: www.dssmith.com.
SOURCE: DS Smith
Paper Industry Newsletter
Stay on top of paper industry news
from around the world with
PaperAge's free weekly newsletter.
Delivered every Thursday.
Sign up today!