DS Smith to invest US$13.7M in Ghimbav production site for expansion

ROMANIA – Packaging firm DS Smith has announced its intention to invest US$13.68 million (€13m) in its Ghimbav production site in Romania as part of the company’s growth strategy in East Europe.

DS Smith says that this investment will support ongoing plastic replacement with customers, increase capacity by over 20%, and significantly boost productivity.

With a continued focus on innovation, the investment will further differentiate DS Smith in the market by supporting customers in achieving their environmental targets.

The investment is part of DS Smith Packaging’s ambitious growth strategy in East Europe, aimed at establishing leadership in sustainable packaging solutions throughout the region while creating value for its customers and partners.

In line with the company’s commitment to sustainability, this strategic investment will support the company’s goal of achieving Net Zero emissions by 2050.

The upgrades at Ghimbav will reduce the site’s gas consumption by 12% and cut its carbon emissions by 210 tonnes CO2 per year through the introduction of a steam optimization feature to the cardboard production machine.

Furthermore, the installation of a new LED Lighting system, part of DS Smith’s Group-wide rollout, will contribute to the business’ target to reduce carbon emissions by 46% by 2030.

The packaging firm has also introduced advanced waste management technologies that reduce on-site electrical consumption by around 10%.

“The €13 million (US$13.68m) strategic investment reflects DS Smith’s commitment to grow innovative paper-based packaging solutions on the Romanian market,” said Reinier Schlatmann, Regional Managing Director, DS Smith Packaging East Europe.

“With 56% of consumers actively seeking to reduce plastic usage, we will be able to better support our customers in meeting their sustainability demands.”

“It will also contribute to the reduction of carbon emissions in our operations and expedite the implementation of circular solutions, aligning with our goal to create sustainable packaging solutions.”

The investment will include the installation of cutting-edge machinery that will increase production capacity by over 20% and introduce advanced technological capabilities, such as 7-color HD Flexo printing and precision die-cutting.

These technical advancements will further strengthen DS Smith’s portfolio in the Romanian market and support customers to achieve their environmental targets and optimize costs.

“We’re thrilled about the significant investment which is enhancing our machinery capabilities and production capacity,” added Christian Schmidt, Managing Director DS Smith Packaging Romania.

“These enhancements empower our team to deliver innovative packaging designs, improve quality control to minimize waste, and deliver state-of-the-art graphics.”

The advanced technologies also enable us to effectively address challenging sustainability requirements.

The upgraded production and warehousing layout enhances manufacturing efficiency, aligning with local and European sustainability trends. This effort contributes to the CO2 emissions reduction goals defined in DS Smith’s Now & Next Sustainability strategy.

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