Will DS Smith/International Paper Merger Aid Sustainability?
Paper manufacturing leaders International Paper and DS Smith have been given the go-ahead to merge – creating a “global leader in sustainable packaging solutions”, according to the two companies.
The European Commission has issued its Phase I clearance of the companies’ combination.
The clearance is conditional on International Paper selling its box plants in Mortagne, Saint-Amand and Cabourg (France), Ovar (Portugal) and Bilbao (Spain).
Focusing on North America and EMEA
According to Andrew Silvernail, CEO of International Paper, The merger of the two businesses will create a single, strong and more sustainable offering.
He said: "While we would have preferred to keep the selected locations as part of our portfolio, these are attractive sites and we are confident we will find a suitable buyer.
“We are very pleased to have reached this important milestone in our acquisition of DS Smith.
“This combination will create a global leader in sustainable packaging solutions, focused on the attractive and growing North American and EMEA regions."
About International Paper
International Paper is a global producer of planet-friendly packaging, pulp and other fibre-based products, and one of the world's largest recyclers.
Headquartered in Memphis, Tennessee, and founded in 1898, it employs approximately 39,000 people globally.
The company has manufacturing operations in North America, Latin America, North Africa and Europe, while its net sales for 2022 were US$21.2bn.
Sustainability is ‘how we work every day’
International Paper’s approach to sustainability has four core areas:
This includes targets to use 100% of fibre from sustainably managed forests or recovered fibre while safeguarding forests, watersheds and biodiversity, and to conserve and restore 1 million acres (400,000 hectares) of ecologically significant forestland.
- Sustainable Operations
To reduce Scope 1, 2 & 3 greenhouse gas emissions by 35% aligned with the best-available climate science
To reduce water use by 25% and implement context-based water management plans at all mills.
- Renewable Solutions
The company aims to advance circular solutions throughout its value chain and create innovative products that are 100% reusable, recyclable or compostable.
- Thriving People and Communities
To achieve zero injuries for employees and contractors
To improve the lives of 100 million people in its communities
To achieve 30% overall representation of women and 50% women in salaried positions
To implement regional diversity plans.
About DS Smith
DS Smith provides innovative packaging solutions, paper products and recycling services with a commitment to sustainability and a circular economy.
On LinkedIn, it says its core purpose is to “Redefine Packaging for a Changing World”, working closely with partners to “incorporate renewable resources for products that minimise our environmental impact, reduce complexity and increase profitability through supply chain optimisation”.
DS Smith was founded by two cousins, David Gabriel Smith and David Solomon Smith, in London in 1940.
In 2023 it recorded revenue of US$10.25bn and employed 30,168 people.
The company manufactures packaging that is 100% recyclable and has sites in 37 countries.
NOW and NEXT
DS Smith has four areas of focus in its sustainability strategy – Circularity, Carbon, People & Communities and Nature.
It focuses on a NOW and NEXT approach. In terms of circularity, this means:
NOW targets:
- By 2025, optimise fibre for individual supply chains in 100% of new packaging solutions
- By 2025, help our customers take 1 billion pieces of problem plastics off supermarket shelves
- By 2025, test up to five reuse pilots and continue to manufacture 100% recyclable or reusable packaging.
NEXT targets:
- By 2030, optimise every fibre for every supply chain
- By 2030, send zero waste to landfill
- By 2030, aim for all packaging to be recycled or reused.
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