DS Smith PLC (LON:SMDS) is to sell its De Hoop paper mill in the Netherlands to De Jong Packaging for a cash consideration of €50mln (£43mln).
The mill produces around 370,000 tonnes of mainly heavier grades of recycled paper per annum.
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 the packaging giant’s Arnstadt packaging facility in Germany.
“While this represents another step to further realign our network of paper mills with the needs of our FMCG [fast-moving consumer goods] and e-commerce led sustainable packaging strategy, we have also found a good home for De Hoop in De Jong Packaging," said Miles Roberts, the group’s chief executive.