Located in Eerbeek, De Hoop paper mill can produce nearly 370,000 tonnes of mainly heavier grades of recycled paper per year
UK-based packaging firm DS Smith has agreed to sell its De Hoop paper mill in the Netherlands to De Jong Packaging, an independent corrugated manufacturer, for €50m.
Located in Eerbeek, the De Hoop paper mill can produce nearly 370,000 tonnes of mainly heavier grades of recycled paper per year.
To support a smooth and orderly transition, DS Smith said that it will continue to purchase from and supply to the De Hoop mill a certain amount of containerboard and fibre.
The sale is expected to be closed in the second quarter of DS Smith’s FY 2021/22, subject to customary closing conditions including works council consultation.
Commenting on the sale of the mill, DS Smith Group CEO Miles Roberts 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 stated that the sale forms part of its plan to have a ‘short paper’ position in Northern Europe where a greater amount of external paper capacity is available to the group.
Also, the divestment is in line with DS Smith’s internal paper production with priorities in light-weight fibre-based packaging solutions for e-commerce and FMCG customers.
The UK-based packaging firm said that the proceeds from the sale will be used to partly offset this year’s enhanced investment in packaging capacity, with new greenfield corrugated box plants in Italy and Poland.
The proceeds will also support the company’s expansion of the Arnstadt packaging facility in Germany.
De Jong Packaging Group CEO Ad Smit said: “The demand for corrugated packaging is accelerating and the acquisition fits in the strategy to be an integrated packaging company.
“We are pleased to have reached this agreement for the De Hoop paper mill. De Hoop is a great mill with a lot of potential which we would like to develop.”