Recycled packaging company DS Smith has said that its subsidiary DS Smith Recycling is “undertaking preparatory work” in central and eastern Europe in advance of further expansion.
In the company’s annual results, it said that its recycling business, previously known as Severnside, was a “key area for growth [and] has made considerable progress developing its activities organically in the UK”.
The company also revealed that 80 per cent of its net capital expenditure was spent in either packaging or recycling.
In the recycling business, annual sales volumes grew by 5.5 per cent on the year. The results statement said: “During the year, we gained additional business from an existing large retail customer, such that we are now their sole collector of fibre in the UK. This position was won due to our service and our carbon impact analysis tool.
“We are currently working with a number of large retail customers to deliver front-of-store recycling collection services. Again, we won this business due to our commitment to high standards of service.”
Adjusted group operating profit for the year increased by £38 million to £129.4 million. The company also revealed that it plans to begin a consultation on the closure of a paper mill, believed to be its Hollins mill in Lancashire. But is also plans to invest in its current Kemsley mill.