In a bold move to strengthen its position in the European packaging market, DS Smith has unveiled a substantial investment of more than €50 million in its Portuguese packaging facilities over the last three years. This significant financial commitment underscores the company's dedication to innovation, sustainability, and meeting the evolving needs of its diverse customer base.
The investment strategy has been multifaceted, focusing on upgrading existing machinery and introducing cutting-edge equipment across several key locations in Portugal. In Oporto and Leiria, DS Smith has acquired two state-of-the-art fluting machines, enhancing the company's ability to produce high-quality corrugated packaging. Meanwhile, the Lisbon site has seen a major upgrade to its corrugator unit with the installation of a 2,800mm-wide Dry End, significantly boosting production capabilities and efficiency.
One of the primary objectives of this investment is to expand DS Smith's service capabilities and foster collaboration in the production of a wide range of sustainable corrugated cardboard solutions. A notable focus has been on the development of triple corrugated cardboard, a robust packaging solution designed for scenarios requiring high-end performance in the transportation of heavy products. This innovation demonstrates DS Smith's commitment to addressing the specific needs of industries dealing with challenging logistics requirements.
In response to the growing demands of the heavy-duty marketplace, DS Smith has also invested in a large processing machine. This equipment is tailored for the manufacture of corrugated cardboard solutions capable of safely transporting heavy, large, or bulky products. The investment is particularly beneficial for sectors such as industry and agriculture, where packaging durability and strength are paramount.
Recognizing the rapid growth of e-commerce and the increasing environmental concerns surrounding packaging, DS Smith has made strategic investments in this area as well. The company has upgraded its machinery to produce padded paper envelopes, offering a more sustainable alternative to traditional packaging methods. DS Smith's designers have developed a fiber-based alternative to plastic-based bubble wrap, simultaneously reducing the amount of filling used in end products. This innovation not only addresses environmental concerns but also caters to the specific needs of e-commerce businesses looking for eco-friendly packaging solutions.
Américo Rocha, General Manager of DS Smith's packaging division in Portugal, emphasized the significance of this investment, stating, This significant investment in the packaging plants in Portugal reflects our commitment to promoting technological and product innovation locally and to contributing to the evolution of our units. The new resources allow us to increase the diversity of our offer, as well as our differentiation in the marketplace, with sustainable, innovative, and optimized packaging solutions for the entire supply chain.
The scope of DS Smith's presence in Portugal is substantial, encompassing six factories and a logistics center dedicated to packaging operations. Additionally, the company operates two recycling mills and a kraft paper mill in the country, further solidifying its commitment to vertical integration and sustainable practices. This comprehensive network allows DS Smith to maintain control over various aspects of the packaging supply chain, from raw material processing to final product delivery, ensuring quality and sustainability at every step.
