DS Smith is set to increase manufacturing capacity at its facilities in Hungary through a €34m ($35.9m) investment, backed by the Hungarian Investment Promotion Agency.

This investment aims to enhance operations across key locations in Füzesabony, Nagykáta, and Győr, with project completion anticipated by April 2026.

This move is part of DS Smith Packaging’s growth strategy in Eastern Europe, focusing on sustainable packaging solutions.

DS Smith Packaging East Europe managing director Reinier Schlatmann said: "With nearly 30 years of market presence, our €34.4m investment in Hungary marks a pivotal step in strengthening our footprint in Eastern Europe, enhancing our manufacturing capacity and advancing our commitment to sustainable packaging solutions."

The strategic expansion is designed to increase manufacturing capacity by more than 40%, incorporate advanced capabilities, and establish new standards of quality.

In Füzesabony, the brownfield investment will establish a state-of-the-art facility with a focus on automation. It is expected to be completed by the end of this year.

New converting equipment will be installed in Győr to expand capacity and improve efficiency and product quality, with the next phase starting in 2025.

The Nagykáta site will prioritise modernising the corrugator to improve board quality, with investment commencing next year.

The investment also involves the creation of three eco-classrooms in Hungary, underscoring DS Smith's dedication to environmental education.

The most recent classroom in Füzesabony is a flexible space designed by architecture students to promote hands-on learning and ecological awareness among children.

Operating across eight locations with more than 1,000 employees, DS Smith Hungary delivers innovative and fibre-based packaging solutions to hundreds of customers and collaborators in the region.

The company’s Now and Next Sustainability strategy aims to lead an industry-wide transition to a circular economy while delivering circular solutions for customers.

Additionally, DS Smith recently invested more than €25m in its facilities in Poland, focusing on production lines and machinery parks in Kielce, Bełchatów, and Sosnowiec. The bulk of this investment, totalling €22m, is allocated to expanding the Kielce packaging facility.