UK-based DS Smith Packaging, a leader in sustainable fibre-based packaging solutions, is investing 13 million euros in its Austrian plants in Margarethen am Moos and Kalsdorf bei Graz to increase production capacity by 20%, improve efficiency and future-proof the business for the long term.

The investment is part of DS Smith Packaging’s ambitious growth strategy in Europe, driving leadership in sustainable packaging solutions across the region and creating value for its customers and partners. The first steps have already been taken by harmonising the business processes of both sites, including quality management and system standardiation. These initiatives are supported by investments in new machinery at both sites, increasing quality, productivity and innovation capabilities.

Reinier Schlatmann, DS Smith regional managing director (East Europe), said: “Our investments in technology, automation, and process improvement, enables DS Smith to drive innovation in packaging solutions. With a strong focus on the transition towards a circular economy, we are reshaping the industry and supporting customer sustainability goals at the same time.

“DS Smith’s commitment in this respect is supported by our development of corrugated packaging that offers alternatives for problematic plastics. The investments in Austria significantly strengthen our position in the market and make a long-term contribution to the environment and economy.”

Investment programme
As part of the investment programme at the DS Smith plant in Margarethen, new palletising robots and transfer carriages have been installed, which, in combination with the targeted optimisation of the production process, will enable a significant increase in efficiency. Meanwhile, at the Kalsdorf facility, a new Masterfold folder gluing machine and a high-performance Masterline die-cutter have been commissioned. In addition, the modernisation of the conveyor systems and the expansion of the warehouses at both sites are close to completion.

A significant portion of DS Smith’s investment is aimed at advancing resource and recycling management. This includes the installation of a new stamping waste press in Kalsdorf, supporting DS Smith’s environmental commitment. The technology will enhance the safe, clean, and efficient disposal of packaging waste, particularly as production scales up. DS Smith is also preparing to invest in other sustainable measures. The roofs in Margarethen and Kalsdorf will be extensively renovated and modernised by the summer of 2024 for the possible installation of large-scale photovoltaic systems in the future.

Dieter Glawischnig, managing director of DS Smith Packaging Austria, said: “With the help of even more efficient processes and increased synergies between the DS Smith sites, we can ensure reliable supply to our customers in the long term. This strengthens their trust and enables us to respond to individual customer needs even in economically volatile times. The company is well positioned for the predicted upturn in the Austrian and European economy in 2024.

“Our investments ensure the stability of our supply chains and sustainable business continuity. We also want to make an active contribution to strengthening the regional economy. This involves both continuing employment opportunities in Vienna, Lower Austria, Salzburg, Burgenland and Styria and at the same time creating attractive new jobs for skilled workers.”

DS Smith has four sites in Austria: Vienna, Margarethen am Moos, Kalsdorf near Graz, and Neumarkt am Wallersee.