Aiming to boost its manufacturing capacities by 40%, DS Smith has invested €34.4 million into its Hungarian operations, including new converting equipment, an updated corrugator, and three ‘eco-classrooms’ for children.
A brownfield investment in Füzesabony is set to result in a state-of-the-art, ‘highly efficient’ facility focused largely on automation. Here the company plans to produce innovative packaging solutions that will contribute to a circular economy.
With its advanced technology, it aims to prioritize energy-saving processes and operational efficiency to achieve a lower environmental impact. The investment is scheduled to be completed by the end of 2024.
Next year, DS Smith intends to commence the next phase of investment to install new converting equipment at its site in Győr. This location is described as a ‘key contributor’ to the company’s strategic focus on replacing plastics and developing packaging innovations.
Through this investment, it foresees an expansion in capacity, a boost in efficiency, and an overall improvement in product quality.
It also seeks to modernize the corrugator at its Nagykáta site – apparently boosting the plant’s energy efficiency and aligning with the company’s sustainability goals. At the same time, it aims to meet its customers’ ‘high expectations’. Investment is expected to commence in 2025.
Additionally, the funding will help establish three ‘eco-classrooms’ in Hungary and pursue DS Smith’s commitment to improving environmental education. Classrooms in Budapest and Nagykáta, respectively, each garnered over one hundred volunteers each and sought to teach young people about sustainability.
The most recent classroom, located in Füzesabony, was created by architecture students and serves as a ‘flexible space’ for children to enrich their knowledge through hands-on learning.
Overall, the investment falls under DS Smith’s growth strategy in Eastern Europe. It is set to contribute to economic growth and create new jobs in Hungary.
As well as driving manufacturing capacity, DS Smith hopes to introduce advanced capabilities; set new standards for product quality; drive the development of sustainable packaging solutions across the regions; create value for its customers and partners; and meet their standards in its production processes.
Reinier Schlatmann, managing director, DS Smith Packaging East Europe, commented: “With nearly thirty years of market presence, our €34.4 million investment in Hungary marks a pivotal step in strengthening our footprint in Eastern Europe, enhancing our manufacturing capacity and advancing our commitment to sustainable packaging solutions.
“By creating local job opportunities, driving innovation, and supporting community sustainability initiatives, we are reinforcing our role as a leader in the circular economy. We are also proud to support long-term growth and environmental responsibility in the country.”
In similar news, DS Smith’s €25 million investment in its sites in Kielce, Bełchatów, and Sosnowiec is intended to increase the company’s presence in the Polish marketplace. The money will fund the installation of a new die-cutter, a new production line for the DS Smith Easy Bowl, and a 25 million square meter increase in its annual packaging production capacity.
Meanwhile, Mondi announced in October that it has completed a €95 million investment to increase kraftliner capacity at its Świecie containerboard mill by 55,000 tonnes. The development is expected to help its customers apply ‘heavy-duty’ kraft, sourced from more resource-efficient production processes, to package large, weighted products.
Shareholders from both companies have also approved International Paper’s acquisition of DS Smith, with their all-share combination set to result in a differentiated corrugated packaging company with 90% of revenue from fibre-based packaging. The combination is still expected to close in Q4 2024.
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