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(Alliance News) - DS Smith on Wednesday said it has completed the sale of its De Hoop paper mill in Eerbeek, Netherlands, in a EUR50 million cash deal.
The recycled paper plant was sold to De Jong Packaging, a Dutch company based in De Lier that specialises in corrugated trays and boxes.
London-based DS Smith plans to use the sale proceeds to partially fund its new greenfield corrugated box plants in Italy and Poland, as well as expand its Arnstadt packaging facility in Germany.
De Hoop paper mill produces around 370,000 tonnes of mainly heavier grade recycled paper a year. Its sale was unveiled in July.
As part of the deal, DS Smith will continue to purchase from and supply to the paper mill a certain amount of containerboard.
"I am pleased that we have completed the sale of the De Hoop mill, which is consistent with our long term strategy to align our paper production and footprint with the needs of our packaging customers," said Chief Executive Miles Roberts.
Shares were up 0.2% at 382.27 pence in London on Wednesday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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