DS Smith invests US$16M to upgrade Grenaa facility, expands fibre-based packaging initiatives

DENMARK – Packaging solutions leader DS Smith has announced a DKr100 million (US$15.5m) investment to modernize its Grenaa facility.

The investments aims to increase production capacity, efficiency, and adaptability to complex packaging requirements for customers across northern Europe.

The upgrade includes the installation of a new rotary die-cutting line with five flexographic printing units and a Göpfert Rotary Die Cutter 16/28 High Board Line.

The technology is designed to deliver greater precision, improved material handling, and reduced waste during corrugated board conversion.

With these enhancements, the Grenaa site is expected to handle an additional 15 million square metres of corrugated board annually.

“Customers are increasingly automating their packing and logistics processes,” said Kristian Eriksen, DS Smith Denmark Sales Director.

“This places higher demands on consistent quality and precision. With this investment, we are strengthening our ability to deliver packaging solutions that perform seamlessly in our customers’ automated flows – both for today and in the future.”

The Grenaa investment is part of a broader regional expansion, which includes a 3,000m² enlargement of DS Smith’s Bredasten site in Värnamo, Sweden.

The phased upgrade, set for completion by June 2027, involves relocating warehouse operations from Malmö and is designed to improve operational efficiency and service levels across northern Europe.

DS Smith’s commitment to sustainability is highlighted through recent fibre-based packaging collaborations.

In January 2026, the company partnered with marine electronics manufacturer Raymarine to replace single-use expanded polyethylene (EPE) foam in radar products with corrugated cardboard.

This solution reduces annual CO₂ emissions by more than 60% while maintaining durability for long-haul shipments.

Similarly, DS Smith teamed with Romanian tomato producer Serele SupeR to replace 10 million single-use plastic trays with recyclable fibre-based punnets over three years.

The new corrugated cardboard punnets, made from 100% FSC-certified materials, reflect growing demand for circular, renewable packaging systems in European fresh produce markets.

These initiatives illustrate DS Smith’s dual strategy of modernizing production facilities while expanding fibre-based, sustainable packaging solutions.

Analysts note that fibre-based alternatives not only reduce reliance on single-use plastics but also align with European regulatory and consumer trends favoring renewable, recyclable packaging.

By combining cutting-edge production technology with circular packaging solutions, DS Smith positions itself as a leader in both operational efficiency and sustainability innovation in the European packaging sector.

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