The Ireland-based corrugated packaging company, Smurfit Kappa, has announced an agreement to purchase Fabrika Hartije Beograd (FHB) paper mill and Avala Ada corrugated plant in Serbia for a sum of $150mn from Kappa Star Group.
Through the agreement, it is anticipated that the acquisition will expand Smurfit Kappa’s geographic footprint, in addition to offering a full containerboard integration in the company’s packaging operations in Southeast Europe.
With a current capacity of 120,000 tonnes at the containerboard mill, there remains significant potential to accelerate capacity with a limited investment of capital.
The Belgrade-based plant has a current production of around 110mn square metres and develops corrugated and laminated packaging.
Smurfit Kappa Group CEO, Tony Smurfit, said: “We are pleased to announce our agreement to acquire FHB and Avala Ada, which will be a cornerstone to the expansion of our business in Southeast Europe.”
“We look forward to welcoming their experienced teams into the Smurfit Kappa Group, and we are confident their expertise and the high quality of the companies' asset bases will provide us with an excellent platform to grow in the region and further strengthen our European offering for our new and existing customers.”