UK-based paper company takes over the rest of the Italmaceri.
DS Smith, a paper, packaging and paper recycling firm headquartered in the United Kingdom, has acquired the remaining 50 percent of the Italian recycling company Italmaceri Srl it did not already own. DS Smith acquired its existing 50 percent of Italmaceri, the second largest recycling company in Italy, as part of the acquisition of SCA Packaging in 2012.
Italmaceri, headquartered in Torino, Italy, with operations in Ancona, Casarile and Novara, handles more than 500,000 metric tons of recovered fiber per year.
Miles Roberts, CEO of DS Smith, says, “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.”
Italy is the fourth largest recovered fiber market in Europe. Despite the volume of recovered fiber it handles, the country’s recycling rate of 63.3 percent is lower than the European average of 71.7 percent. This difference, DS Smith says, can provide the company with the potential 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’s recycling division, says, “This is another exciting chapter within our European growth strategy. The recovered fiber from Italmaceri will secure a fiber supply stream for our recycling network, including the DS Smith paper mill at Lucca, Italy. 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 realizing maximum efficiency and cost gains.”
DS Smith recovers for recycling around 5.4 million metric tons of paper per year. The company operates in 25 countries and has 14 recycling facilities.