24 July 2008
Share Price
118.25 GB pence

This segment is comprised of three businesses:

  • Severnside Recycling, which collects waste paper for recycling and provides other waste management services;
  • St Regis Paper Company, which processes the waste paper to produce recycled paper, the majority of which is corrugated case material (CCM) used in the manufacture of corrugated packaging; and
  • DS Smith Packaging, which converts CCM into corrugated board and boxes.

The three activities of the corrugated packaging supply chain are heavily inter-dependent although all three maintain open-market positions to ensure competitiveness.

Severnside Recycling is the leading UK collector and merchant of waste paper, the principal raw material for producing recycled paper. In total, annually it sources 1.7 million tonnes of waste paper by means of collections through its 17 UK depots and open-market purchases from supermarkets and third party waste merchants. In addition, Severnside's facilities management function provides general recycling and waste disposal services for customers in a number of sectors. Severnside's main sources of waste paper include large supermarket groups and other retailers, other commercial and industrial organisations and local authorities. Severnside particularly concentrates on sourcing used corrugated packaging, referred to as old corrugated containers (OCC), which is the most suitable form of waste paper for producing recycled CCM. Severnside supplies all of the 1.0 million tonnes of waste paper required by the St Regis paper mills and it sells 0.7 million tonnes on the open market.

St Regis has four paper mills which produce approximately 0.85 million tonnes of 100% recycled paper. In addition, the recently acquired New Thames Paper Mill (NTPM) at Kemsley produces 0.2 million tonnes of partly recycled fine coated paper; this machine will be converted, in winter 2008/09, to produce 100% recycled CCM. St Regis is the leading UK producer of CCM, which accounts for approximately 0.55 million tonnes of the paper it produces, and is a leading European producer of plasterboard liner, which accounts for over 20% of its production; the remainder comprises other speciality paper grades.

DS Smith Packaging produces 1.1 billion square metres per annum of corrugated packaging at 32 factories located throughout the UK. It is the leading supplier of corrugated packaging to the UK market with a market share of around 27%. Approximately 65% of sales go into the fast-moving consumer goods (FMCG) sector predominantly for food and beverages, with the remainder being principally for the consumer durables and industrial sectors. DS Smith Packaging supplies many of the leading FMCG companies.

For further information on the Group's UK Paper and Corrugated Packaging operations visit:

www.severnside.com

www.stregis.co.uk

www.dssmith-packaging.com








Head Offices:

Severnside Recycling
The Pines
Heol-Y-Forlan
Whitchurch
Cardiff
CF14 1AX
Tel: +44 (0)2920 615 871

St Regis Paper Company
Beech House
Whitebrook Park
68 Lower Cookham Road
Maidenhead
Berkshire
SL6 8JZ
Tel +44 (0) 1628 583 300
DS Smith Packaging
Beech House
Whitebrook Park
68 Lower Cookham Road
Maidenhead
Berkshire
SL6 8JZ
Tel: +44 (0)1753 754 380

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