Construction work has begun at the plant in Arnstadt, Germany. In 12 months' time, this site of the corrugated board packaging manufacturer DS Smith will be expanded and modernized. At a cost of 16.7 million euros - a typical amount for the group, which employs 30,000 people in 30 countries - the plant will expand its offering in the e-commerce and consumer goods markets.
"We have a long history of steady growth in these two markets, growth that has been sustained over the past year, in particular by the effects of the covid 19 pandemic on purchasing behavior, explains Uwe Väth, DS Smith Packaging's managing director for Germany and Switzerland, in a statement. All forecasts and our own market research indicate that e-commerce will continue to grow in the future."
Jürgen Prinz, group director of Conventional North at DS Smith Packaging, adds: "The Arnstadt plant is one of the most traditional sites in the German packaging industry. The first corrugated board was produced here 90 years ago. With this investment, we are strengthening the future viability of the site and increasing the quality and delivery reliability of the manufactured products. (...) In the medium term, we will not only be able to meet the growing demand of our customers here, but also create new jobs."
First of all, a workshop will be expanded during 2021 and equipped with a new generation corrugated board production line. This new system with a larger web width will offer better paper utilization, higher speed and optimized performance.
In a second phase, internal transport will be automated with two conveyor systems. The plant will have another interim storage facility, which is expected to be completed in spring 2022.
This work will also significantly reduce energy consumption and paper waste.
