De Jong Packaging Group has announced the proposed acquisition of the De Hoop paper mill in The Netherlands from DS Smith plc. The mill produces 370,000 tonnes of recycled paper per annum and is located in Eerbeek.
The acquisition contributes to the growth ambition of De Jong Packaging Group. “The demand for corrugated packaging is accelerating and the acquisition fits in the strategy to be an integrated packaging company”, explains Ad Smit, CEO of De Jong Packaging Group. “We are pleased to have reached this agreement for the De Hoop paper mill. De Hoop is a great mill with a lot of potential which we would like to develop.”
Completion of the sale is subject to customary closing conditions including works council consultation and expected to take place in the third quarter of 2021. The De Hoop paper mill is running different paper grades of recycled paper that fit well to the portfolio of De Jong Packaging Group. As part of the agreement, DS Smith will continue to purchase from and supply to the paper mill a certain amount of containerboard and fibre in support of a smooth and orderly transition.