3rd Mar 2005 14:30
Smith (DS) PLC03 March 2005 3 March 2005 DS SMITH PAPER DIVISION SIGNS SUPPLY AGREEMENT WITH BPB DS Smith, the international paper and packaging manufacturer and office productsdistributor, announces that its St Regis Paper division has entered into a longterm agreement with BPB plc, the world's leading producer of plasterboard, forthe supply of plasterboard liner paper. Under this agreement, which builds uponSt Regis' existing supply relationship with BPB, sales of plasterboard linerpaper to BPB will grow to an annual rate of approximately 100,000 tonnes.Combined with sales of plasterboard liner to other plasterboard producers, thiswill make St Regis a major player in this important growth market. To underpin BPB's requirements for premium quality plasterboard liner, St Regisannounces a £30 million capital expenditure programme to upgrade existingmachines at its mills at Kemsley in Kent and Wansbrough in Somerset over thenext two years. This investment programme will also enhance the quality of StRegis' corrugated case material (CCM) liners, used for manufacturing corrugatedpackaging board, and coreboard, used for manufacturing tubes. Following theinvestment, St Regis' total output will increase to approximately 1.1 milliontonnes of paper, of which 90% will be made from recycled recovered paper and 75%will be CCM. Tony Thorne, DS Smith Group Chief Executive commented: "We are pleased to be entering into this partnership with BPB. St Regis hasused its technical expertise to develop its business in plasterboard liner, aproduct which must meet stringent strength and appearance standards. Theinvestment at our Kemsley and Wansbrough mills will expand capacity and furtherenhance quality across their product ranges. This agreement and capitalexpenditure supports our drive to raise the returns from our UK Paper andCorrugated Packaging operations." Enquiries DS Smith Plc 020 7932 5000Tony Thorne, Group Chief ExecutiveGavin Morris, Group Finance DirectorPeter Aubusson, Group Communications Manager Financial Dynamics 020 7269 7291Richard Mountain/Robert Gurner This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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