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DS Smith looks West and a strategic alliance with RockTenn

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DS Smith looks West and a strategic alliance with RockTenn

October 02, 2012 - 03:29

BRUSSELS, Oct. 2, 2012 (RISI) -Strategic alliances are also another way of making valuable inroads into the US market. Recent news of DS Smith and RockTenn's recent strategic alliance demonstrates just that. A licensing agreement will give RockTenn the exclusive rights to manufacture and distribute innovative packaging equipment in the USA.

The new Meta® technology produced a wide range of two-piece shelf ready packages that enable multinational package goods companies to meet the varied requirements of US retailers. Predictive software and stacking devices also optimize and reduce packaging weight and minimize environmental impact.

"The RockTenn team is tenaciously focused on delivering industry-leading innovation in packaging for our customers," says RockTenn's corrugated packaging president, James Porter. "This exciting technology brings new opportunities to reduce the total cost of packaging and to improved print options to better sell our customer's products and do so in a more sustainable fashion."

DS Smith Group chief executive, Miles Roberts sees the alliance as key to the extension of its licensee network to the US market. He says: "This alliance with RockTenn brings the advantages and value of our patented technology to a wider audience, and allows us better to serve our global customers."

He adds: "The extension of licensee network to the US market, combined with our extensive European corrugated manufacturing footprint means we now have one of the world's broadest capabilities for the creation of innovative corrugated packaging propositions."

This is not the first time that the companies have worked together. RockTenn's Automated Packaging System business unit is a previous licensee of the DS Smith's Otor® mandrel forming technology. The new agreement encompasses the next generation of Otor® technology, including the exclusive right to packaging designs and to high-speed mandrel forming equipment distribution.

Moorgate Capital's Mockett comments on the alliance: "In the UK, where DS Smith has its headquarters, the importance of packaging in the overall marketing mix is increasing. This is being driven by the fragmentation of the traditional media and more and more purchasing decisions being made in store at point of purchase (POP) or point of sale (POS).

Mockett feels the alliance will allow DS Smith to be part of the bigger picture in the US. Mockett concludes: DS Smith is a market leader in this POS/POP field and by sharing its proprietary technology with RockTenn it will gain access to the US market without establishing or acquiring a manufacturing footprint, which could be a lengthy or cash consuming process."