Jefferson Smurfit will develop a business in Asia by taking a one-quarter stake in a Hong Kong paper firm.

The group will pay about $21 million (€23.1 million) for 25 per cent of Leefung-Asco Printers Holding, which has operations in Hong Kong and in mainland China.

Its principal operating subsidiaries print books, magazines and packaging products.

In a statement yesterday, Smurfit said the $21 million would be used to expand Leefung's packaging and print operations, in mainland China mostly.

Chairman and chief executive Dr Michael Smurfit said the deal was consistent with the group's global positioning.