DS Smith plans to focus on its FMCG and recycled packaging businesses in Europe.
The UK-based company said in its strategic review published last week that it finds opportunities in France and the UK and sees potential in emerging markets in the Central and Eastern Europe.
DS Smith has recognised prospects in corrugated packaging and found it easy for recycling.
The company had acquired French corrugated packaging company Otar for €247m earlier in 2010, in line with this plan.
DS Smith sees its recycling proposition as it’s approach to differentiation as consumer goods companies and retailers seek to fulfil their environmental commitments.
In order to fund expansion of the recycled packaging business, the company plans to reduce its exposure to paper manufacturing.
The company reviewed its business strategy to create a growing business which is more focused, yielding high returns and margins with less cyclicality.