Irish corrugated and paper-based packaging firm Smurfit Kappa has acquired Netherlands-based paper and recycling business Reparenco for €460m.
As per the deal signed in May 2018, Smurfit Kappa has acquired Reparenco’s paper mill with a capacity of 675,000 tons in the Netherlands.
The mill includes two machines with a capacity of 405,000 tons of recycled containerboard and 270,000 tons of graphic paper, which can be converted into containerboard.
Smurfit Kappa Europe CEO Saverio Mayer said: “Reparenco represents early delivery of a central element of our Medium Term Plan – to increase our European recycled containerboard capacity.
“It is ideally situated in our core European operating region where we continue to see strong demand driven by growth in e-commerce and increased substitution of plastic with paper-based packaging.
“The mill is also very well placed on the cost curve and specialises in producing basis weights from 80 to 120 grams which caters for the market’s growing demand for lighter-weight materials.”
Reparenco’s mill, which also includes a 750,000 ton recovered fibre operation, is expected to help expand Smurfit Kappa’s paper integration capacity.
The acquisition is a part of Smurfit Kappa’s plant to deliver significant synergies in multiple areas, including increased integration of containerboard and the recycling operations into the group.
Smurfit Kappa Paper Europe COO Laurent Sellier said: “The acquisition of Reparenco will strengthen our integrated business model and adds 405,000 tonnes of recycled containerboard capacity to our system.
“While the machine offers the potential for conversion to containerboard over the medium-term, our intention is to continue to produce graphic paper for our customers for the foreseeable future.
“The 750,000 tonne recycling operation increases our security and quality of raw material supply and also ensures we can provide our customers with greater certainty about the quality and performance of our products.”
Smurfit Kappa provides packaging solutions for the food and drink, consumer good and industrial sectors.
The company’s product portfolio includes container board, paper and board solutions, as well as packaging machinery solutions.