DS Smith Plc - Sale of De Hoop paper mill in the Netherlands
DS Smith is pleased to announce the proposed sale of its De Hoop paper mill in the Netherlands to De Jong Packaging for a cash consideration of €50 million (c. £43 million). The mill produces c.370k tonnes of mainly heavier grades of recycled paper per annum.
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.
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.
Completion of the sale is subject to customary closing conditions including works council consultation and expected to take place in the second quarter of our FY 2021/22. 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.
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."
DS Smith Plc +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Director
Greg Dawson, Group Corporate Affairs Director
Brunswick +44 (0)20 7404 5959
Dan Roberts, Sophia Lazarus
About DS Smith
DS Smith is a leading provider of sustainable paper-based packaging worldwide which is supported by recycling and papermaking operations. It plays a central role in the value chain across sectors including e-commerce, fast moving consumer goods and industrials. Through its purpose of 'Redefining Packaging for a Changing World' and its Now and Next sustainability strategy, DS Smith is committed to leading the transition to the circular economy, while delivering more circular solutions for its customers and wider society - replacing problem plastics, taking carbon out of supply chains and providing innovative recycling solutions. Its bespoke box-to-box in 14 days model, design capabilities and innovation strategy sits at the heart of this response. DS Smith operates in 34 countries employing around 30,000 people and is a Strategic Partner of the Ellen MacArthur Foundation.