World News

Constantia Packaging has paid EUR55m (£44m) for Smurfit Kappa's 40% stake in Duropack, a corrugated business with operations in Austria, Germany and Eastern and South-Eastern Europe.

Constantia, the Austrian aluminium, corrugated board and flexible packaging group, now owns all of the shares of Duropack.

Constantia Packaging chief executive Hanno Bästlein said that by acquiring the remaining 40% interest in Duropack, the firm continued to invest in the "promising" growth market of South-Eastern Europe.

Jefferson Smurfit Group acquired the 40% stake in Duropack through its acquisition of Interwell in the early 1990s.

However, following its merger with Kappa Packaging in 2005, Smurfit Kappa had many wholly owned businesses in Eastern Europe that were in direct competition with Duropack operations.

Constantia has agreed with Smurfit Kappa that it is in the "best interests" of shareholders and Duropack to dispose of the 40% shareholding.

Smurfit Kappa will continue to supply corrugated board base paper to Constantia.

Duropack reported sales of €328m in 2007.

Constantia forecasts group sales of more than €2bn in 2008.