British packaging company DS Smith has made an investment of €13m ($14m) to boost the production capacity of its facilities in Austria.
This strategic investment in the company’s Margarethen am Moos and Kalsdorf bei Graz facilities will bolster production by up to 20%.
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It comes as part of Smith’s growth plan in Eastern Europe, focusing on the sustainable packaging market and delivering increased value to customers and stakeholders.
As the initial step of this investment, the company has already commenced the harmonisation of business processes, including system standardisation and quality management, at the plants.
These efforts are complemented by the acquisition of new machinery to boost quality, productivity, and innovation capabilities at the two sites.
Smith has installed new palletising robots and transfer carriages at the Margarethen facility.
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By GlobalDataThe newly installed systems, when combined with the targeted optimisation of the entire manufacturing process, are expected to enhance the Margarethen site’s production efficiency.
Meanwhile, the Kalsdorf plant has welcomed a Masterfold folder glueing machine and a Masterline high-performance die-cutter, marking significant technological upgrades.
The company said that the work to upgrade conveyor systems and expand warehouses at both the Austrian sites is also nearing completion.
Smith East Europe regional managing director Reinier Schlatmann said: “The investments in Austria significantly strengthen our position in the market and make a long-term contribution to the environment and economy.”
Looking ahead, Smith is preparing for further sustainable initiatives, including the renovation and modernisation of roofs of both the Margarethen and Kalsdorf plants by mid-2024.
It will further lay the foundation for potential large-scale photovoltaic system installations in the future.
In November year, Smith announced a €90m investment to support the sustainable transformation of energy supply at its Rouen paper mill in Normandy, France.
