16th Jul 2021 08:04
(Alliance News) - DS Smith PLC on Friday said it has sold its De Hoop paper mill in the Netherlands to De Jong Packaging in a EUR50 million cash deal.
The London-based packaging supplier said it will use the sale proceeds to "partly offset this year's enhanced investment in packaging capacity", having invested in new corrugated box plants in Italy and Poland.
"We are pleased to have reached this agreement for the De Hoop Paper mill. While this represents another step to further realign our network of paper mills with the needs of our fast-moving consumer goods and e-commerce led sustainable packaging strategy, we have also found a good home for De Hoop in De Jong Packaging," commented Chief Executive Miles Roberts.
The Eerbeek, Netherlands-based De Hoop paper mill produces around 370,000 tonnes of mainly heavier grade recycled paper a year.
Completion of the sale is expected to take place in the second quarter of financial year 2022. As part of the deal, DS Smith will continue to purchase from and supply to the paper mill a certain amount of containerboard.
DS Smith shares were 0.3% higher at 416.40 pence each in London in early dealings on Friday.
By Will Paige; [email protected]
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