Packaging provider DS Smith has expanded its packaging production capabilities in Hungary with a €34.4 million (£28.3 million) investment, supported by the Hungarian Investment Promotion Agency, which is set to enhance the company’s operations across its three locations in Füzesabony, Nagykáta, and Győr. The project’s completion is anticipated by April 2026.
The investment – which the company says will boost manufacturing capacities by 40% – is part of DS Smith’s growth strategy in East Europe, driving sustainable packaging solutions, including circular and plastic replacement alternatives, across the region and creating value for its customers and partners.
Describing it as a pivotal step in strengthening the company’s footprint in Eastern Europe, Reinier Schlatmann, managing director of DS Smith Packaging East Europe, says the investment will enhance manufacturing capacity, create job opportunities, drive innovation, and support community sustainability initiatives.
At its Füzesabony facility, the investment – to be completed by the end of 2024 – will aid the company in reducing environmental impact through operational efficiency and energy-saving processes, focussing on automation. The facility will produce packaging solutions that align with DS Smith’s commitment to the circular economy.
A key contributor to DS Smith’s strategic focus on plastic replacement and packaging innovations, the Győr site’s product range plays a crucial role in supporting the company’s sustainability ambitions, explained DS Smith. The investment in this site includes plans to install new converting equipment to expand capacity, enhancing efficiency, and improving product quality. The next phase of investment is set to start in 2025.
The investment into the Nagykáta site will commence in 2025 and will prioritise the modernisation of the corrugator to improve board quality while meeting the high expectations of DS Smith’s customers, the company said. Additional upgrades will enhance the plant’s energy efficiency, further aligning with the company’s sustainability goals.
In addition, this investment also includes the establishment of three eco-classrooms in Hungary: the first launched in Budapest, the second in Nagykáta, and, most recently, in Füzesabony – creating a flexible space to encourage ecological awareness among children.
