Against the background of overcapacity on the recycled containerboard market and tight margins in a number of its businesses, DS Smith takes action to optimise the integration of the recently acquired SCA Packaging business.
Paper and packaging producer DS Smith said it has been reviewing the enlarged business and analysing all of its commercial activities. In a statement on the present state of the integration of SCA Packaging following its acquisition in June this year, the group said that it would "selectively exit some categories of business where we believe such activity will not deliver attractive returns to shareholders. These categories amount to less than 4% of Group revenue and contribute minimal profitability."
On a more concrete note, DS Smith said it would align its paper capacity to the needs of its packaging business to limit its exposure to this more volatile business.
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