Corrugated and plastics packaging company DS Smith has completed the acquisition of remaining 50% stake in Italian recycling company Italmaceri Srl.
DS Smith's acquisition of Italmaceri was a part of the acquisition of SCA Packaging in 2012.
Commenting on the deal, DS Smith chief executive Miles Roberts said: "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's recovered fibre market ranks fourth in Europe but has a recycling rate of 63.3% which is lower than the European average of 71.7%. With the acquisition, DS Smith aims to target the retail, wholesale and manufacturing, and municipal markets.
DS Smith, recycling division chief executive Peter McGuinness said: "This is another exciting chapter within our European growth strategy. The recovered fibre from Italmaceri will secure a fibre supply stream for our recycling network, including the DS Smith paper mill at Lucca.
"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 realising maximum efficiency and cost gains."
In a year, DS Smith recovers circa 5.4 million tonnes of paper and packaging for recycling.
Handling up to 500,000 tonnes of recovered fibre per annum, Italmaceri is considered to be the second largest recycling company in Italy.
