On November 13, DS Smith management explained the technical reasons behind its plan to close the DS Smith Packaging Savoie plant in Valgelon-La Rochette, which employs 90 people. The presentation was made at the first meeting of the Social and Economic Committee (CSE), one week after the announcement of the opening of a procedure information-consultation process.
According to the Group, the Valgelon-La Rochette site, the result of the Europac takeover in 2019, has a number of structural handicaps: it is "a plant ill-adapted to today's corrugated board market standards" with the site enclosed, the buildings outdated, the layout on two levels... And despite the 13 million euros invested in recent years, the plant's performance has not matched that of the Group's other French cardboard plants, and the recent strategy of specialization has not been enough to catch up.
Sustained negative financial results
According to management, the site has posted a negative net result for the past five years, with losses totaling 8.6 million euros. As of April 30, 2024, operating debt stood at 17.6 million euros, reveals DS Smith, "with an inability for the company to reduce its debt" .
These figures contrast with those of the trade unions, who were predicting a profit in 2024.
Volumes redeployed to other DS Smith plants...
If the closure is confirmed, the volumes produced at La Rochette would be redeployed to several of the Group's plants in France, mainly in the "eastern cluster". DS Smith is announcing investments in these sites to absorb the additional volumes, without however specifying their scale. This redistribution of capacity is in line with an underlying trend in the sector: to concentrate production on the most efficient sites and reduce those considered less competitive.
... with job creation at these sites
The project calls for the creation of 30 jobs in the plants that will take over the volumes, plus 70 positions currently vacant in the DS Smith Packaging France network.
Closure of 27 French sites newly International Paper
Since January 2025, DS Smith has been owned by the International Paper group. This planned closure comes just a few months after the change of shareholder.
Management emphasizes : "This project is in no way a disengagement in France of DS Smith (an International Paper company since January 31, 2025). It affects one site out of 27 in France."
