DS Smith announces major €120 million investment package for Nördlingen, Arenshausen and Arnstadt sites

In order to meet the increasing demand for sustainable, recyclable packaging solutions, capacity expansions are the focus of the investments. For example, the Nördlingen site, which will receive the lion's share of the investment sum (more than 75 million euros), will be expanded to include an additional state-of-the-art corrugator and a fully automated high-bay warehouse. The Arenshausen and Arnstadt sites are also being significantly modernised with investments of 34 million euros and 9 million euros respectively and supplemented with numerous processing machines of the latest generation.

The expansion and further development of the three locations is accompanied by the creation of numerous new jobs. Especially in the areas of production and logistics, new employees are already being sought immediately. A total of 100 new employees will be sought at the three locations by the time the construction work is completed and all new machines and systems are put into operation.

"The extraordinary investment sum with a total volume of almost 120 million euros enables us to further expand our product and service portfolio of innovative display and packaging solutions for various target segments and to continue to grow together with our customers. I am very pleased that the significant capacity expansions will allow us to continue our growth of the past years and to further support our customers in achieving their business and sustainability goals in the future" says Uwe Väth, Managing Director DS Smith Packaging for Germany & Switzerland.

DS Smith is continuously evaluating how to achieve the highest possible efficiency and in the context of the investment activities, a detailed analysis of the portfolio as well as the economic performance of all sites was again carried out. As part of this analysis, the decision was made to close the Berlin plant, which can no longer be run economically. The company is now working with employees and partners to ensure that the process of closure is as smooth as possible. DS Smith deeply regrets the impact on the employees of the Berlin plant, but is achieving a strengthened business and more optimised, customer-focused performance as a result.

"With the planned investments in the expansion of production and logistics capacities and the associated increases in efficiency, we are not only further improving our delivery and quality performance, but also strengthening the future viability of our entire Germany & Switzerland region. In addition, the extensive modernisations and expansions in line with our sustainability strategy "Now. And Future." sustainability strategy, the extensive modernisations and expansions will significantly increase the energy efficiency of the sites and improve our carbon footprint. We are now looking forward to starting the extensive modernisations and expansions at the three locations - and the first construction measures have already begun as well," Väth concludes.