€13 million investment in innovative packaging solutions and significant production boost in Romania

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We are increasing our footprint in the Romanian market with an investment of over €13 million in our Ghimbav production site. Work at Ghimbav is expected to be completed by the end of 2023, and will support customers’ sustainability goals as well as reducing our carbon emissions on site.

This investment will support ongoing plastic replacement with customers, increase capacity by over 20%, and significantly boost productivity. With a continued focus on innovation, the investment will further differentiate our offering in the market by supporting customers to reach environmental targets. 

The investment is part of our ambitious growth strategy in East Europe, driving leadership in sustainable packaging solutions across the region while creating value for our customers and partners.

In line with our commitment to sustainability, this strategic investment will support the goal to meet Net Zero emissions by 2050. The upgrades at Ghimbav will reduce the site’s gas consumption by 12% and cut its carbon emissions by 210 tonnes CO2 per year through the introduction of a steam optimisation feature to the cardboard production machine.

Furthermore, the installation of a new LED Lighting system, part of the group-wide rollout, will contribute to our target to reduce carbon emissions by 46% by 2030. We have also introduced advanced waste management technologies that reduce electrical consumption by around 10% on site.

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The investment will include the installation of cutting-edge machinery that will increase production capacity by over 20% and introduce advanced technological capabilities such as 7-color HD Flexo printing and precision die-cutting. These technical advancements will further strengthen our portfolio in the Romanian market and support customers to achieve their environmental targets and optimise costs.

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The upgraded production and warehousing layout enhance manufacturing efficiency, aligning with local and European sustainability trends. This effort contributes to the CO2 emissions reduction goals defined in our Now & Next Sustainability Strategy.

All the technological upgrades will be completed by end of 2023.

 *Euromonitor International Voice of the Consumer: Lifestyles Survey, 2022

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Source: DS Smith