Synergies

Smurfit Kappa completes the acquisition of Reparenco

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The close strategic integration of the DutchReparenco with the current European activity of SKG wis expected to create a synergy worth more than 30 million euros. «We are very pleased to complete the acquisition of Reparenco and to welcome its 315 employees into Smurfit Kappa», declares Saverio Mayer, CEO Europe of Smurfit Kappa. «There is a close cultural integration between our companies and we are excited about the potential of Reparenco within the integrated Smurfit Kappa system. Reparenco represents a fundamental step in our medium-term plan aimed at increasing capacity of recycled cardboard at European level. Reparenco is ideally situated in our main European operating region, where we are continuing to see a strong demand led by the growth of e-commerce and by plastic being increasingly replaced by paper-based packaging. The site is also very well positioned on the cost curve and specialises in the manufacture of weights from 80 to 120 grams which meet the increasing market demand for lighter materials».

«The acquisition of Reparenco», continues Laurent Sellier, COO of Smurfit Kappa, Paper Europe, «will strengthen our integrated business model and will add 405 thousand tons of capacity of recycled cardboard to our system. In addition, we are pleased to have purchased a high quality graphic paper machine very well positioned in the market. Whilst the machine offers the potential for conversion into containerboard in the medium-term, our intention is to continue to produce graphic paper for our customers in the near future.

The recycling of 750 thousand tons increases the safety and quality of the supply of raw materials and allows us, furthermore, to supply our customers with greater certainty about the quality and performance of our products».

Reparenco manages a paper mill with two machines in the Netherlands with a capacity of 675 thousand tons, together with an operation to recover fibres from 750 thousand tons. The paper mill includes two machines with a capacity of 405 thousand tons of recycled cardboard and 270 thousand tons of graphic paper (with the possibility of conversion into containers).