Statement re Capacity Closure

    


Smurfit Kappa Group PLC



      Smurfit Kappa Group: Permanent Closure of 130,000 Tonnes of Capacity

                 Market-related downtime of up to 80,000 tonnes

                                 SKG.I     SKG.L

Smurfit Kappa Group plc ('SKG' or the 'Group'), one of the world's largest
integrated manufacturers of paper-based packaging products with operations in
Europe and Latin America, today announced further recycled containerboard
capacity rationalisation as part of its capacity management programme.

SKG plans to permanently close 130,000 tonnes of less efficient containerboard
capacity. It will also reduce 2008 production by up to 80,000 tonnes through
market-related downtime.

SKG intends to permanently close its Valladolid recycled containerboard mill in
Northern Spain in the second quarter of 2008. The Valladolid mill has an annual
capacity of 130,000 tonnes. The closure will have the effect of reducing
recycled capacity by 70,000 tonnes in 2008. The objective is to reduce operating
costs and to maximize the continuing efficiency of our mill system.

In addition, SKG will take up to 80,000 tonnes of market-related downtime (the
majority of which will be taken during March/April 2008) to optimise the Group's
supply-demand balance and to address an increase in inventory levels of recycled
containerboard.

SKG will continue to review its production capacity, the cost profile of its
mills relative to integration requirements, broader market demand and industry
inventory levels.

The cash cost of these actions is expected to be mitigated through exceptional
gains in 2008. Further details of both the cash costs and impairment charges
will be provided in SKG's 2008 first quarter results scheduled for release on 9
May, 2008.

About Smurfit Kappa Group

Smurfit Kappa Group is a world leader in paper-based packaging with operations
in Europe and Latin America.

Smurfit Kappa Group operates in 22 countries in Europe and is the European
leader in containerboard, solid board, corrugated and solid board packaging and
has a key position in several other packaging and paper market segments,
including graphic board, sack paper and paper sacks. Smurfit Kappa Group also
has a growing presence in Eastern Europe. Smurfit Kappa Group operates in 9
countries in Latin America and is the only pan-regional operator.

Contacts                                                             Information

Smurfit Kappa Group             +353 1 202 7000           Beech Hill, Clonskeagh
                                                               Dublin 4, Ireland
K Capital Source                +353 1 631 5500               Ph +353 1 202 7000
                                                 smurfitkappa@kcapitalsource.com

Smurfit Kappa (LSE:SKG)
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