IP closes plants in California and Kentucky
The company justifies the move with the ongoing reorganisation of its North American packaging network.
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DS Smith has decided to make extensive investments in its three sites in Nördlingen in Bavaria and Arenshausen and Arnstadt in Thuringia. A total of almost 120 million euros will flow into the expansion and modernisation of the three plants.
In order to increasing demand for sustainable, recyclable packaging solutions capacity expansions are at the centre of the investments. For example, the Nördlingen site, which is receiving the lion's share of the investment sum of more than 75 million euros, will be expanded by, among other things expanded with an additional, state-of-the-art corrugator and a fully automated high-bay warehouse.
The Arenshausen and Arnstadt sites are also being significantly modernised with investments of EUR 34 million and EUR 9 million respectively, and numerous processing machines of the latest generation supplemented.
The expansion and further development of the three locations goes hand in hand with the creation of numerous new jobs. In particular We are looking for new employees in the areas of production and logistics with immediate effect. A total of 100 new employees will be needed at the three locations by the time the construction work is completed and all new machines and systems are commissioned.
„This extraordinary investment totalling almost 120 million euros will enable us to further expand our product and service portfolio of innovative display and packaging solutions for various target segments and continue to grow together with our customers. I am very pleased that the significant capacity expansions will enable us to continue our growth of recent years and continue to support our customers in achieving their business and sustainability goals in the future.“
Uwe Väth, Managing Director DS Smith Packaging for Germany & Switzerland
Berlin plant to be closed
DS Smith continuously evaluates how the highest possible efficiency can be achieved and a detailed analysis of the portfolio and the economic performance of all locations was again carried out as part of the investment activities. As part of this analysis, the decision was made to close the Berlin plant, which was no longer economically viable. The company is now working with employees and partners to ensure that the closure process runs as smoothly as possible. DS Smith deeply regrets the impact on the employees at the Berlin plant, but is achieving a strengthening of the business and a more optimised, customer-focused performance as a result.
„With the planned investments in the expansion of production and logistics capacities and the associated increases in efficiency, we are not only further improving our delivery and quality performance, but are also also strengthen the future viability of our entire Germany & Switzerland region. In addition, the extensive modernisations and expansions in line with our sustainability strategy ‚Now. And in the future.‘ significantly increase the energy efficiency of our sites and minimise our CO2-Footprint improve. We are now looking forward to starting the extensive modernisation and expansion work at the three locations - and the first construction measures have already begun,“ concludes Väth.
Source: DS Smith
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