DS Smith increases ownership of Italmaceri to 100%
DS Smith announces the acquisition of the remaining 50% of Italian recycling company Italmaceri Srl (“Italmaceri”). DS Smith acquired its existing 50% of Italmaceri as part of the acquisition of SCA Packaging in 2012.
Italmaceri is the second largest recycling company in Italy, handling in excess of 500,000 tonnes of recovered fibre per annum. It has its headquarters in Torino, with operations in Ancona, Casarile and Novara.
Miles Roberts, chief executive of DS Smith said: ”The purchase of Italmaceri is consistent with DS Smith’s strategy to lead the way in recycling. It builds on our market leading position in Europe and will allow us to grow our closed loop recycling model in Italy, where we already have packaging and paper operations. We want to provide our customers not only with excellent packaging, and a world class recycling service, but solutions to all elements of their Supply Cycle.”
The Italian recovered fibre market is the fourth largest in Europe, but has a recycling rate of 63.3%, lower than the European average of 71.7%. This offers potential for DS Smith to target and grow volumes through the commercial / industrial (including retail, wholesale and manufacturing) and municipal markets. The company will be building on existing market and geographic presence to roll out to a wider base.
Peter McGuinness, chief executive of DS Smith, Recycling Division, said: ”This is another exciting chapter within our European growth strategy. The recovered fibre from Italmaceri will secure a fibre supply stream for our recycling network, including the DS Smith paper mill at Lucca. We have taken the opportunity to invest further in an innovative business that will help deliver our vision; the power of less, which helps our customers achieve more, with minimal impact to the environment; while realising maximum efficiency and cost gains.”
As the largest fibre recycler in Europe DS Smith recovers circa 5.4 million tonnes of paper and packaging annually for recycling. Recovered packaging (and other fibre grades) provide the raw materials used in production by the group’s paper making operations.