Britain-based packaging company DS Smith has announced its plans to invest €11.35m ($12.14m) for the expansion of its Cartogal packaging plant in Galicia, Spain.

The multimillion investment and expansion move aims to increase the size, production, and storage capacity of the facility situated in Galicia’s A Pobra do Caramiñal town.

Through this investment, DS Smith intends to open up new business opportunities for itself in Iberia’s north-west region.

The expansion will also allow the company to provide enhanced services to its customers across the area.

The project will add approximately 6,000m² of space to the existing 11,000m² plant, expanding the facility to more than 17,000m² in area.

The expansion work will be carried out over a period of seven months.

The company said the associated work, which includes the construction and roofing of the new building, will be performed utilising sustainable and environmentally friendly materials.

Furthermore, DS Smith is planning to equip energy efficiency systems at the facility to further contribute towards its ambition to achieve net-zero emissions by 2050.

This work also supports the company’s ‘Now & Next’ sustainability initiative, which aims to minimise its environmental impact and further expedite the efforts to transition into a circular economy.

DS Smith Iberia managing director Ignacio Montfort said: “We are proud of the Cartogal plant expansion as it will allow us to significantly increase production capacity and meet growing customer needs.

“This investment undoubtedly reflects our continued commitment to continue offering the best sustainable packaging solutions, while supporting economic growth in the region.”

According to the company, this expansion project will not only provide improvements to the Cartogal packaging plant’s existing set of resources but will also prepare its current and expanded facilities for the installation of incoming new machinery.

The new machinery is set to arrive by the end of the year.