Investments

DS Smith: EUR 120 million for three German sites in Nördlingen, Arenshausen and Arnstadt

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DS Smith a supplier of sustainable fibre-based packaging, decided to make major investments at its three sites in Nördlingen in Bavaria and Arenshausen and Arnstadt in Thuringia. A total of almost EUR 120 million will be invested in the expansion and modernisation of the three plants.

In order to meet the growing demand for sustainable and recyclable packaging solutions, capacity expansion is at the heart of these investments. For example, the Nördlingen site, which will receive the bulk of the investment sum – more than EUR 75 million – will be expanded to include an additional state-of-the-art corrugator and a fully automated high-bay warehouse. The Arenshausen and Arnstadt sites were also considerably modernised with investments of EUR 34 million and EUR 9 million respectively, and supplemented with numerous state-of-the-art processing machines.

The expansion and further development of the three locations is accompanied by the creation of numerous new jobs. Especially in the areas of production and logistics, new employees are already being sought immediately. A total of one hundred new employees will be sought at the three locations before the construction work is completed and all new machines and systems are put into operation.

«The extraordinary amount of investment with a total volume of almost EUR 120 million enables us to further expand our product and service portfolio of innovative display and packaging solutions for various target segments and to continue to grow together with our customers. I am very pleased that the significant capacity expansions will enable us to continue our growth of recent years and further support our customers in achieving their business and sustainability goals in the future,» says Uwe Väth, managing director DS Smith Packaging for Germany and Switzerland.

Berlin plant to close

DS Smith is constantly evaluating how to achieve the highest possible efficiency and, in the context of investment activities, a detailed analysis of the portfolio and economic performance of all sites was again carried out. As part of this analysis, the decision was made to close the Berlin plant, which can no longer be operated economically. The company is now working with employees and partners to ensure that the closure process is as smooth as possible.

«With the planned investments in the expansion of production and logistics capacities and the associated efficiency gains, we not only further improve our delivery and quality performance, but also strengthen the future profitability of our entire Germany and Switzerland region. In addition, the extensive modernisations and expansions in line with our sustainability strategy will significantly increase the energy efficiency of the sites and improve our carbon footprint. We are looking forward to starting the extensive modernisations and expansions at the three sites – and the first construction measures have also already been started» Väth concludes.