Twenty-nine packaging manufacturing sites, one paper mill, two recycling centers, and four offices slated for closure: DS Smith reveals the scope of its industrial reorganization ahead of its spin-off from International Paper. At its investor day held on November 3, the British corrugated packaging manufacturer detailed its cost-cutting program and financial outlook. DS Smith has not released the full list of affected facilities, but it has identified six packaging sites in Spain, Bosnia and Herzegovina, Slovenia, and Hungary.
Nearly 15% of the packaging facilities affected by these closures
The restructuring affects approximately 15% of the packaging manufacturing network, which currently comprises 180 packaging facilities (and 14 paper mills). DS Smith plans to transfer the bulk of production volumes to its other plants. Approximately 60% of the affected production volumes have already been reassigned. The program has already resulted in the elimination of approximately 3,100 positions, representing nearly 10% of the 2025 workforce.
In its presentation, DS Smith emphasizes that this industrial transformation also includes a significant component of paper mill modernization. The group has invested approximately 1.1 billion euros in its facilities over the past two years, particularly to expand its production capacity for low-grammage papers.
Expected annual savings of 480 million euros
In addition to site closures, DS Smith is implementing a cost-cutting program expected to generate total annual savings of approximately 480 million euros, primarily by the end of 2027. For 2026, the manufacturer is already projecting cumulative savings of 200 million euros.
This reorganization is expected to improve profitability, with adjusted EBITDA for fiscal year 2026 projected to be between 730 and 780 million euros, corresponding to a margin of 9 to 9.7 percent. In the medium term, management is targeting a margin of around 15%.
As a reminder, DS Smith, which was acquired by International Paper in January 2025, is expected to regain its independence in December as part of a new company that will combine the European packaging operations of both manufacturers. This future entity will have combined revenue of approximately 8 billion euros and a presence in 29 countries.
In addition, DS Smith will return to the London Stock Exchange and will also be listed in New York. The initial timeline, announced in January 2026, called for the transaction to take place within twelve to fifteen months. The presentation to investors now indicates an initial public offering next month.
