Smurfit, Kappa close to merger

Recycling Today, Oct, 2005

The merger of Ireland-based Jefferson Smurfit and Dutch firm Kappa Packaging is nearing conclusion, the Irish Times reports.

Kappa Packaging, with annual sales of about 3 billion euros, produces containerboard, solid board, corrugated and solid board packaging, graphic and specialty board. Jefferson Smurfit, a private company, has sales of almost 5 billion euros and produces paper and packaging materials.

"Europe is a market characterized by capacity growth which significantly exceeds demand growth," Smurfit's Gary McGann, says. "We expect that these conditions will prevail unless there is a significant and sustained increase in demand for corrugated or structural change in the European containerboard industry."