DS Smith invests EUR 13 million in Austrian plants

DS Smith, one of the leaders of sustainable fiber-based packaging, has invested a total of EUR 13 million in its Margarethen am Moos and Kalsdorf bei Graz plants in Austria to increase production capacity, improve efficiency and strengthen its long-term competitiveness.  

The investment is part of DS Smith Packaging’s growth strategy in East Europe, driving leadership in sustainable packaging solutions across the region and creating value for its customers and partners. 

The first steps have already been taken by harmonizing the business processes of both sites, including quality management and system standardization. These initiatives are supported by investments in new machinery at both sites increasing quality, productivity as well as innovation capabilities.

Reinier Schlatmann, DS Smith regional managing director for East Europe, said: ‘Our investments in technology, automation, and process improvement, enable DS Smith to drive innovation in packaging solutions. With a strong focus on the transition towards a circular economy, we are reshaping the industry and supporting customer sustainability goals at the same time.

DS Smith's commitment in this respect is supported by our development of corrugated packaging that offers alternatives for problematic plastics. The investments in Austria significantly strengthen our position in the market and make a long-term contribution to the environment and economy.’

As part of the investment program at the DS Smith plant in Margarethen, new palletizing robots and transfer carriages have been installed, which, in combination with the targeted optimization of the production process, will enable a significant increase in efficiency.

At the Kalsdorf facility a new folder gluing machine (Masterfold) and a high-performance die-cutter (Masterline) were put into operation.

In addition, the modernization of the conveyor system and the expansion of the warehouses at both sites are close to completion.

Together these investments will increase DS Smith's output in Austria by 20 percent to meet the growing demands of customers.

A significant portion of DS Smith's investment is dedicated to advancing resource and recycling management. This includes the installation of a new stamping waste press in Kalsdorf, supporting DS Smith's environmental commitment. The technology will enhance the safe, clean, and efficient disposal of packaging waste, particularly as production scales up.

DS Smith Packaging Austria is also preparing to invest in other sustainable measures. The roofs in Margarethen and Kalsdorf will be extensively renovated and modernized by the summer of 2024 for the possible installation of large-scale photovoltaic systems in later years. 

Dieter Glawischnig, managing director of DS Smith Packaging Austria, commented: ‘With the help of even more efficient processes and increased synergies between the DS Smith sites, we can ensure reliable supply to our customers in the long term. This strengthens their trust and enables us to respond to individual customer needs even in economically volatile times. DS Smith is well positioned for the predicted upturn in the Austrian and European economy in 2024.

Our investments ensure the stability of our supply chains and sustainable business continuity. We also want to make an active contribution to strengthening the regional economy. This involves both continuing employment opportunities in Vienna, Lower Austria, Salzburg, Burgenland and Styria and at the same time creating attractive new jobs for skilled workers.’

DS Smith has four sites in Austria, in Vienna, Margarethen am Moos, Kalsdorf near Graz, and Neumarkt am Wallersee.