Packaging Briefs – TUESDAY, APRIL 20

Cereplast to distribute bioplastic resins in Southern China
Cereplast, Inc. has added one regional distributor, S&P Sourcing Co. Ltd. a Hong Kong-based company operated as Vulcan Plastics Technology Co. Ltd. (“Vulcan”) in China, to distribute Cereplast’s bio-based resins in southern China. Headquartered in Hong Kong, Vulcan is said to be a leading supplier of high performance precision thermoforming machine, thermoforming tooling, and plastic raw materials in China. The company has its manufacturing and distribution facility in Shenzhen, China, which is operated as Vulcan Plastics Technology Co. Ltd.

Reynolds Group Holdings Limited announces intention to Acquire Evergreen Packaging group of companies
Reynolds Group Holdings Limited today announced its intention to acquire the Evergreen Packaging group of companies and the Whakatane Mill from Carter Holt Harvey Limited, a New Zealand company which is ultimately owned by the owner of Reynolds Group Holdings Limited, Mr. Graeme Hart. The acquisitions are expected to occur in May, 2010. The Evergreen Packaging group of companies manufacture fresh carton packaging systems for beverage products, primarily serving the juice and milk end markets. The Whakatane Mill is a paper mill located in New Zealand.

Smurfit Kappa announces completion of Mondi asset swap agreement, acquisition of UK corrugated assets and disposal of Western European sack converting operations
Smurfit Kappa Group plc has signed an asset swap agreement with Mondi Group. SKG will acquire Mondi’s corrugated operations in the United Kingdom, while Mondi will acquire SKG’s Western European sack converting operations. The total cash cost of the asset swap for SKG is €51 million. SKG is acquiring Mondi’s UK corrugated operations, comprising three corrugated box plants, for a consideration of €43 million (£38 million), on a cash and debt free basis. The three facilities reported a combined 2009 full year EBITDA of €8.0 million (£7.1 million), and a profit before tax of €2.0 million. SKG is disposing of its Western European sack converting operations, comprising 4 plants in France, 3 in Spain, and 1 in Italy, as well as a number of sales offices. In 2009, these operations reported an EBITDA loss of €4.4 million and a loss before tax of €12.6 million. On disposal, SKG will incur exceptional write-offs of approximately € 30 million, including a net cash cost of €8 million.

Verso Paper receives Green Business Innovator of the Year Award
Verso Paper Corp. announced today it was honored as the 2009 Southeast Regional Green Business Innovator of the Year in a ceremony at the Green Business Summit hosted by Lipscomb University in Nashville. Verso was recognized for its continued efforts to work with customers and suppliers as partners, often sharing environmental performance data, to enable the evaluation of sustainability throughout the supply chain and promote forest certification and recycling programs.

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