Major investment by DS Smith Packaging in Austria

DS Smith, the world's leading provider of sustainable fibre-based packaging solutions, is investing heavily in its two Austrian production sites: A total of 13 million euros is being spent on modernising the plants in Margarethen am Moos and Kalsdorf near Graz. Specifically, the aim is to increase capacity by 20 per cent, boost efficiency and strengthen competitiveness.
The investment is part of DS Smith Packaging East Europe's ambitious growth strategy, which is aimed at taking the lead in sustainable packaging solutions throughout the region and creating added value for customers and partners.

"By investing in technology, automation and sustainability, we are creating the infrastructure for forward-looking packaging innovations," says Reinier Schlatmann, DS Smith Regional Management Director East Europe, adding: "With a clear focus on the transition to a circular economy, we are reshaping the industry while supporting our customers' sustainability goals." - The company's aim is to expand production capacity, increase efficiency and ensure long-term competitiveness in Austria: "DS Smith's commitment is supported by the development of innovative corrugated packaging that offers alternatives to problematic plastics. The investments in Austria significantly strengthen our market position and make a sustainable contribution to the environment and the economy," says Schlatmann.

Production to be increased by 20 per cent
The first steps towards harmonising the business processes of both sites in Austria, including quality management and system standardisation, have already been implemented: "With the help of even more efficient processes and increased synergies between the DS Smith sites, we can also ensure the reliable supply of our customers in the long term. This strengthens their trust and enables us to respond to individual customer needs in a targeted manner, even in economically volatile times," emphasises Dieter Glawischnig, Managing Director of DS Smith Packaging Austria.

These measures are supported by investments in new machines: for example, a new folder gluer (Masterfold) and a high-performance die cutter of the latest generation (Masterline) were put into operation at the Kalsdorf site. This increases output by 20 percent and makes a significant contribution to the sustainable optimisation of production processes. At the DS Smith plant in Margarethen, new palletising robots and transfer carriages were again implemented, which, in combination with targeted optimisation and conversion of the production lines to two parallel packaging lines, enable a significant increase in efficiency. At the same time, the modernisation of the conveyor technology and the expansion of the warehouses at both sites are nearing completion in order to continue to meet increasing customer demand. "From today's perspective, DS Smith is therefore well positioned for the predicted upturn in the Austrian and European economy in 2024." (Glawischnig)

Strengthening the business location
"The investments ensure the stability of the supply chains and guarantee sustainable business continuity. By expanding our warehouse capacities and modernising our machinery, we are not only increasing our production capacity, but also optimising our operational processes. In this way, we are achieving new levels of capacity and strengthening our competitiveness on the market," emphasises Glawischnig.

At the same time, the company is actively endeavouring to strengthen the regional business location. "Our investments secure jobs in Vienna, Lower Austria, Salzburg, Burgenland and Styria and at the same time create attractive new job opportunities for skilled workers," says the Austrian Managing Director.

Investments in the circular economy
A not insignificant part of DS Smith's investments is also aimed at promoting a sustainable resource and circular economy. One example of this is the installation of a new die-cutting waste press in Kalsdorf, which enables safer, cleaner and even more efficient waste disposal in packaging production despite increasing production. Measures such as these emphasise DS Smith's long-term commitment to environmental protection and responsible corporate management. Investments are also being made in further forward-looking measures at the two Austrian production sites. By the summer, the roof areas in Margarethen and Kalsdorf will be extensively renovated and modernised to prepare them for the installation of large-scale photovoltaic systems in the coming years.

Dieter Glawischnig emphasises: "Our investments not only increase the efficiency of our company in Austria. They also make an important contribution to the sustainable development of the environment and society. We are proud to be able to make future-oriented decisions and look forward to utilising the opportunities of tomorrow today."