M-real pulls out of UK and sells New Thames mill to DS Smith

printweek.com has reported that M-real has withdrawn all production from the UK after agreeing to sell its New Thames office paper mill in Kemsley, Kent, to DS Smith for £60m.

At the end of 2008, the mill will stop producing paper for M-real and switch to producing, 'raw material for corrugated board'.

M-real had to make a decision as to whether to make a major investment in the older mill at New Thames or concentrate on newer mills elsewhere.

The New Thames mill paper machine currently has an annual capacity of 230,000 tonnes of office paper, employs 280 people and has sales of £119m (€160m).