Packaging company DS Smith has sold its Higher Kings paper mill to Asia File Corporation Berhad.
It has been sold for £4.6 million payable in cash on completion. Higher Kings mill produces filing and educational papers, including 34,000 tonnes of paper per annum. The sale is expected to be completed by 30 September.
In a statement, DS Smith said: “This transaction marks a further development in the execution of DS Smith’s strategy to focus on recycled packaging for consumer goods and to reduce paper manufacture that does not directly support the packaging business.
“This transaction follows the announcement on 23 June 2011 of the intention to close the Hollins paper mill, which produces 95,000 tonnes per annum. This reduction in DS Smith’s exposure to paper manufacturing will help DS Smith achieve its goal of delivering higher returns on capital with reduced cyclicality.”