DS Smith Announces €13 Million Investment in Austrian Plants

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We are making significant investments in Austria: a total of €13 million in our Margarethen am Moos and Kalsdorf bei Graz plants.

The investment will increase our production in Austria by 20%.

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

The first steps have already been taken by harmonising the business processes of both sites, including quality management and system standardiation. 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 East Europe:

"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.”

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As part of the investment program at our plant in Margarethen, new palletising robots and transfer carriages have been installed, which, in combination with the targeted optimisation 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 modernisation of the conveyor system and the expansion of the warehouses at both sites are close to completion. Together these investments will increase our output in Austria by 20 % to meet the growing demands of customers.

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

We are also preparing to invest in other sustainable measures. The roofs in Margarethen and Kalsdorf will be extensively renovated and modernised 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:

"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."

Source: DS Smith