Business

Smurfit Kappa, Europe's largest packaging and paper group, is set to re-enter the Chinese market.

The company left the Chinese market in 2003, but chief executive Gary McGann told the Daily Telegraph it has drawn up a list of potential takeover and joint venture targets.

McGann, who visited China with finance director Ian Curley two weeks ago, said that China provides a great opportunity because it's paper and packaging industry is fast-growing but fragmented.

"It is almost inevitable that we will go back into China," he said.

The newspaper reported that Smurfit is most likely to buy box-making factories, McGann said the company might need three or four to achieve economic scale.

McGann said the time was right for Smurfit to consider another "big" deal, but added that the company was not in discussions.

The Chinese paper and packaging sector grew about 10% in 2007, with food and beverage packaging set to grow between 30% and 50% this year.