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DS Smith, which sold its Darlington plant safeguarding 130 jobs, records £100m savings
A RECYCLED packaging company which sold a North-East factory in a deal that saved 130 North-East jobs has revealed strong trading results.
DS Smith, which earlier this year sold its Darlington plant to corrugated cardboard firm Cepac, says it expects to make about £100m savings.
The company sold the former SCA Branded Packaging factory, on the Faverdale Industrial Estate, under competition rules, after it bought the business last year.
It said its packaging arm had maintained strong growth, despite slow European markets, though it remained cautious about its paper business, blaming a volatile market for its poor performance.
Miles Roberts, DS Smith Group chief executive, said: “Our business model remains resilient and we are well placed to create further substantial value.
“We re pleased with the continuing progress on the integration of SCA Packaging, but remain cautious about the outlook for Europe and expect difficult markets to persist.”
The packaging plant has been in Darlington for decades and was originally known as Hugh Stevenson (North-East) Ltd, before the company merged with the Bowater Paper Group in 1966.
In 1989, Bowater was acquired by Swedish-owned multi-national paper firm SCA, which makes hygiene products including Tena and Bodyform, before the packaging part of the business was bought by DS Smith.