SPAIN – British fiber-based packaging supplier DS Smith has invested US$12.16 million (€11.35m) to expand the surface area, production and storage capacity of its Cartogal production plant in Galicia, Spain.
The project, which is part of a global strategy, is a major milestone for DS Smith as it will allow the company to access new opportunities in the northwest of Iberia and it is anticipated to lead to increased production capacity and a better service to all the company’s customers.
Following the expansion works, the DS Cartogal plant will add 6,000 sqm to the current 11,000 sqm, creating a total packaging plant of more than 17,000 sqm.
During the estimated seven months of construction work, the foundations, construction and roofing of the new buildings will be carried out, and a series of improvements will also be made to current resources, as well as preparing the facilities to house new machinery by the end of 2023.
Ignacio Montfort, managing director of DS Smith Iberia said: “This expansion of our Cartogal plant is a source of pride for all of us at DS Smith, as it will allow us to significantly increase our production capacity to meet the needs of our customers, who are at the center of our universe.
“This investment reflects our ongoing commitment to continue to provide the best sustainable packaging solutions while supporting economic growth in the region.”
Montfort reiterated that the project further demonstrates DS Smith’s strong commitment to expansion and growth in the Iberia region, where it already has 26 plants.
This announcement follows a similar investment made by the company in April this year to upgrade its kraft paper mill in Viana, Portugal, rebuilding the mill’s paper machine and reducing CO2 emissions.
According to DS Smith, the investment package will include the rebuilding of the existing paper machine and a new state-of-the-art recovery boiler, which will be one of the most modern in Europe.
The boiler will improve environmental performance by enhancing steam efficiency at the mill by 25%, with steam from the boiler being recycled back into the mill.
The new boiler will also support the rebuilding of the mill’s paper machine, PM4, increasing both its speed and capacity.
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