DS Smith sells Devon Paper Mill in a £4.6m deal
DS Smith continues to reduce its paper making capacity by selling Higher Kings Mill in Devon to Asia File Corporation, Berhad. This is all part of its strategy to focus on recycled packaging for consumer goods, and to reduce paper manufacture that doesn’t directly support its packaging business. Also as part of this strategy was the announcement In June of their intention to close Hollins paper mill, which produces 95k tonnes per year as well as being in the process of selling Spicers, their office products wholesaling business, to Spanish group Unipapel in a £200m deal.
Higher Kings Mill is a good solid business, but has no place in their current strategy, so a change of ownership should be good for them.
DS Smith continues to invest in its people and machinery and we’ve heard rumours that acquisitions in Europe could be on the cards.
DS Smith state “This reduction in DS Smith’s exposure to paper manufacturing will help DS Smith achieve its goal of delivering higher returns on capital with reduced cyclicality,” the firm said in a statement.
Posted Date: 19th Sep 2011