DS Smith sells another paper mill

19th Sep 2011 07:44

Recycled packaging and office products group DS Smith said on that Monday that its paper business is to sell a UK paper mill to Asia File Corpoeration Berhad for an enterprise value of £4.6m.The Higher Kings Mill in Devon produces filing and educational papers, making 34,000 tonnes of paper every year.The sale of the mill, payable in cash, is part of DS Smith's attempt to reduce paper production (that does not directly support the packaging business) in order to focus on recycled packaging for consumer goods.The group announced in June of its intention to close its larger Hollins paper mill, which produces 95,000 tonnes per annum."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.BC