DS Smith to sell Higher Kings Paper mill

DS Smith has taken another step to focus its business on recycled packaging for consumer goods. This morning, the company announced the sale of its Higher Kings mill to Asia File Corporation Berhad for a consideration of £4.6m. Higher Kings mill produces filing and educational papers with an annual capacity of 34,000 t. The transaction is supposed to be completed on 30 September 2011.
This divestment follows DS Smith’s announcement to close the Hollins Paper mill at the end of 2012. Altogether, the company plans to reduce its output by 250,000 tpy until 2014 and to focus completely on the production of corrugated packaging.