Packaging producer DS Smith has announced a major investment in its corrugated packaging facility in Grenaa. The company plans to invest up to 100 million Danish kroner, equivalent to about €13.4 million, to expand production capacity and upgrade equipment at the site.
The project aims to strengthen the plant’s ability to meet growing demand for fibre-based packaging solutions across Northern Europe.
DS Smith, which is part of International Paper, said the investment will focus on improving production precision, speed and flexibility while supporting customers that increasingly rely on automated logistics and packaging systems.
New high-capacity production line
A central element of the investment is the installation of an advanced rotary die-cutting line with integrated flexographic printing.
The new equipment will allow the Grenaa facility to produce more complex packaging designs while maintaining the consistent quality standards required by automated packing and distribution operations.
Another advantage of the system is faster changeovers between product runs, allowing the plant to switch more quickly between different packaging formats.
Kristian Eriksen, sales director at DS Smith Denmark, says the investment reflects changes in customer operations.
– We clearly see a trend where more customers are automating their packing and logistics processes. That significantly increases the demands for consistent quality and precision in packaging, Eriksen says.
Capacity expected to rise significantly
Once the new equipment is operational, DS Smith expects production capacity at the Grenaa facility to increase by as much as 15 million square metres of corrugated board annually.
The company also expects improvements in delivery times and overall operational stability.
The investment forms part of a broader expansion programme across the company’s European packaging network.
In Sweden, DS Smith is also planning upgrades at its packaging facility in Värnamo. The Bredasten site is expected to be expanded by around 3,000 square metres to support both production and logistics activities.
As part of that project, warehouse operations currently located in Malmö will be relocated to the expanded facility in Värnamo.
Growing demand for fibre-based packaging
The investments reflect increasing demand for fibre-based packaging solutions, particularly in sectors such as e-commerce, food and beverages, consumer goods and industrial logistics.
Corrugated packaging has gained market share in recent years as companies seek alternatives to plastic packaging and look for materials compatible with recycling systems.
DS Smith operates a global network of recycling facilities, paper mills and packaging plants, supplying packaging solutions to a wide range of industries.
International Paper, which owns DS Smith, is one of the world’s largest producers of fibre-based packaging, pulp and paper products. The company focuses on developing packaging systems designed to support large-scale supply chains and growing demand for renewable materials.
Source: DS Smith.
Fact:
Corrugated board is widely used in transport packaging due to its strength, low weight and recyclability. Demand has grown alongside the expansion of e-commerce and automated logistics systems, which require packaging with consistent dimensions and reliable structural performance.
