DS Smith is investing up to €13.4 million in the modernisation of its packaging plant in Grenaa, Denmark, as the company seeks to strengthen production capacity and support growing demand for fibre-based packaging solutions across Northern Europe.
The investment will focus on a technological upgrade of the site, including the installation of a new production line for flexographic printing and rotary die-cutting designed for processing corrugated board. The new line will incorporate multiple printing units alongside advanced automation and control technologies aimed at improving production efficiency, speed and precision.
According to the company, the modernisation will enable the Grenaa plant to increase its production capacity by up to 15 million square metres of corrugated board per year. The upgrade is also expected to shorten delivery times and enhance supply reliability for customers.
Automation Driving Packaging Requirements
The investment reflects changing requirements across packaging supply chains, particularly as automated logistics and packaging systems become more widely adopted.
Kristian Eriksen, Sales Director at DS Smith Denmark, said there is a clear shift toward automation in packaging and logistics operations.
“There is a clear trend towards more automated packaging and logistics processes,” Eriksen said. “This places significantly higher demands on the consistent quality and precision of packaging. With this investment, we are strengthening our ability to deliver solutions that can be seamlessly integrated into our customers’ automated processes – both now and in the future.”
DS Smith said the new production technology will allow faster changeover times and enable the manufacture of more complex die-cut designs while using less material. The improvements are expected to be particularly beneficial for customers operating automated packaging and logistics systems, where consistent packaging dimensions and performance are essential.
Strengthening Nordic Operations
Alongside the Danish upgrade, DS Smith is also investing in its operations in Sweden. The company is building a 3,000-square-metre extension at its Bredasten site in Värnamo and relocating warehouse activities from Malmö to the expanded facility.
The Swedish project is expected to be completed by June 2027.
Fibre-Based Packaging Strategy
The investment forms part of DS Smith’s broader strategy to expand its fibre-based packaging capabilities, reflecting growing demand for recyclable alternatives to plastic packaging.
The company said the upgrades will support its focus on circular economy principles while strengthening the resilience and predictability of its production and supply chains.
