AEP Industries has said it will sell its 50 per cent ownership stake in Rapak Asia Pacific to its UK joint venture investment partner, DS Smith, for an undisclosed amount.
AEP Industries manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in ten countries throughout North America, Europe and Australasia.
Of late DS Smith has been performing well in its operations as a whole and, in particular its packaging division. The company is involved in office supplies and attributes its recent up turn to a series of cost cutting measures implemented last year. In the past year it has made a number of acquisitions in an area of increasing specialisation - liquid packaging. Last July it announced the acquisition of German liquid packaging specialist, Zewathener.
The move into Asia is expected to trigger a series of other investments in the region, where the company is still relatively small in size. DS Smith's Preliminary results for the year to 30 April 2003 will be announced on 26 June 2003.
To the contrary, AEP's recent financial results have been disappointing with the company recently announcing that it expects forthcoming results to be below expectations. Analysts and industry observers expect further consolidation of its packaging operations, particularly those outside of its core markets, could occur in the coming months.