DS Smith, an International Paper company and provider of fibre-based packaging solutions, is investing up to EUR13.4m to upgrade its corrugated packaging facility in Grenaa, Denmark, as part of efforts to expand production capacity and support growing demand for automation-ready packaging in Northern Europe.
The investment focuses on upgrading the plant’s production line and installing new equipment designed to improve precision, efficiency and manufacturing flexibility. According to the company, the enhancements will help strengthen DS Smith’s ability to supply packaging solutions to customers across the region while supporting increasing levels of automation in packing and logistics operations.
A central component of the upgrade is the installation of an advanced rotary die-cutting line for flexographic printing, enabling faster production speeds and improved print quality on corrugated board.
New Rotary Die-Cutting Technology
The new production line includes five printing units and a Göpfert Rotary Die Cutter 16/28 High Board Line, incorporating servo-driven systems, vacuum sheet transport and automatic register control.
The equipment is designed to deliver consistent accuracy throughout the production process while allowing rapid changeovers between packaging formats. This capability enables converters to produce complex die-cut corrugated designs while maintaining operational stability and minimising material waste.
DS Smith said the investment reflects a broader shift among customers toward increasingly automated packaging and logistics systems, which place higher requirements on packaging precision and consistency.
“We see a clear trend where an increasing number of customers are automating their packing and logistics processes. This places significantly higher demands on consistent quality and precision in packaging. With this investment, we are strengthening our ability to deliver solutions that perform seamlessly in our customers’ automated flows – both for today and in the future,” said Kristian Eriksen, Sales Director at DS Smith Denmark.
Expanding Corrugated Capacity
Following the installation of the new production line, DS Smith expects the Grenaa facility to increase its annual corrugated board capacity by up to 15 million square metres.
The additional output is expected to improve delivery times and provide greater operational stability for customers across several sectors, including e-commerce, food and beverage, and industrial packaging.
The company said the upgraded machinery will also support improved supply chain planning and forecasting by streamlining production processes and enabling faster responses to operational challenges.
Wider Nordic Manufacturing Investments
Alongside the Grenaa project, DS Smith is also investing in its packaging facility in Bredasten, Värnamo, Sweden. The site will undergo a 3,000 square metre expansion, aimed at strengthening internal operations and supporting continued product development for customers across the region.
The transition will take place in phases, with completion expected by June 2027. As part of the changes, the company will relocate warehouse operations currently based in Malmö to the Bredasten site.
DS Smith said the investments form part of its broader strategy to strengthen regional production capabilities while supporting the packaging industry’s transition toward more circular solutions.
The company continues to develop packaging solutions aligned with its sustainability strategy, “Redefining Packaging for a Changing World,” which aims to support a circular economy while delivering fibre-based alternatives to less sustainable materials.
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