HUNGARY – DS Smith, a global leader in sustainable packaging, has announced a €34 million (US$35.9m) investment to enhance manufacturing capacity across its facilities in Hungary, with support from the Hungarian Investment Promotion Agency.
The project will focus on sites in Füzesabony, Nagykáta, and Győr, and is expected to be completed by April 2026.
This strategic move aligns with DS Smith’s growth ambitions in Eastern Europe, emphasizing sustainable and innovative packaging solutions.
Reinier Schlatmann, Managing Director of DS Smith Packaging East Europe, highlighted the significance of the investment, stating, “With nearly 30 years of market presence, our €34.4 million (US$36.32m) 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.”
As part of a brownfield investment in Füzesabony, DS Smith will develop a state-of-the-art, automated facility.
This advanced site will leverage cutting-edge automation technologies to streamline production processes and improve efficiency.
The facility is expected to be operational by the end of 2024, marking a significant milestone in the company’s expansion strategy in Hungary.
In Győr, the focus will be on installing new converting equipment to enhance manufacturing capacity and boost operational efficiency.
These upgrades will also improve product quality, ensuring that DS Smith continues to meet its customers’ evolving needs.
The Győr site’s expansion will begin in 2025, aligning with the company’s broader commitment to innovation and quality.
At the Nagykáta location, plans are underway to modernize the corrugator, a crucial component in the production process.
This investment will prioritize enhancing board quality, contributing to more durable and sustainable packaging solutions.
The modernization efforts at Nagykáta are scheduled to commence next year, further solidifying DS Smith’s commitment to delivering high-quality, fiber-based packaging solutions in the region.
The investment also includes the creation of three eco-classrooms across Hungary, promoting environmental education.
The latest classroom in Füzesabony, designed by architecture students, encourages hands-on learning and ecological awareness among children.
DS Smith Hungary operates in eight locations, employs over 1,000 people, and provides fiber-based packaging solutions to hundreds of clients.
The company’s Now and Next Sustainability Strategy aims to drive the transition to a circular economy, offering circular solutions for its customers.
Broader expansion plans
This Hungarian investment follows a similar €17.6 million project in Greece, where DS Smith recently upgraded its Korinthos plant.
The enhancements include a new corrugator and high-speed printing machine, boosting production capacity by 30%.
Reinier Schlatmann emphasized the impact of these upgrades, “This investment will significantly expand our capacity, quality, and innovative packaging solutions portfolio. It will also enable plastic replacement alternatives, strengthening our position in this vital market.”
The company also constructed a 3,300m² raw materials warehouse and expanded product storage, streamlining logistics and improving efficiency at the Korinthos site.
With these strategic investments, DS Smith continues to enhance its operations across Europe, focusing on innovation and sustainability and supporting the growing demand for eco-friendly packaging solutions.
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