DS Smith, the British multinational packaging business, has announced the proposed slae of its De Hoop paper mill in the Netherlands to De Jong Packaging, in a cash deal worth €50m, or £43m.
According to the company, the proceeds will be used partly to offset this years investments into greenfield corrugated box plants in Italy and Poland, and expansion of its Arnstat packaging facility in Germany.
Miles Roberts, group chief executive, said: 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 FMCG and e-commerce led sustainable packaging strategy, we have also found a good home for De Hoop in De Jong Packaging.
The mill produces c.370k tonnes of mainly heavier grades of recycled paper per annum.
Completion of the sale is expected to take place in the second quarter of the companys financial year for 2021/22.