The paper and packaging giant announced in June last year that it would be expanding its recycled packaging business, while reducing its exposure to paper manufacturing.
It made a major move towards this goal in July when it made a move to sell Spicers, which culminated in a binding agreement earlier this month.
DS Smith has now entered into a binding legal agreement for the sale of its, Cullompton, Devon paper mill to Asia File Corporation Berhad.
The sale is for an enterprise value of £4.6m payable in cash on completion, the sale is expected to be complete by 30 September.
According to a stock exchange statement, on 30 April 2011, the net assets of the mill business were £3.8m, while gross assets were £8m.
A statement from the company said: "This transaction marks a further development in the execution of DS Smith's strategy to focus on recycled packaging for consumer goods and to reduce paper manufacture that does not directly support the packaging business.
"This reduction in DS Smith's exposure to paper manufacturing will help DS Smith achieve its goal of delivering higher returns on capital with reduced cyclicality."
