DS Smith to buy one of its Hungary plant sites

United Kingdom-based DS Smith, a global producer of recycled-content paperboard and packaging says  it has entered into an agreement to purchase the land and building that now hosts its existing corrugating operations in Győr, Hungary.

The overall property measures 28,500 square meters (about 7 acres), DS Smith says. The firm says the parcel is “strategically located in an important industrial area of Győr,” and that the building is “well-suited for DS Smith's business needs, offering the opportunity for future growth.”

Currently, DS Smith Hungary occupies part of the property as a tenant. The seller of the land and building is OTP Real Estate Investment Fund, a property investor based in Hungary.

“This strategic investment will add a state-of-the art facility to our existing footprint, which further strengthens our position in the region and provide(s) a powerful platform for plastic replacement solutions for our customers,” says Reinier Schlatmann, a regional managing director with DS Smith.

Dóra Kenéz, CEO of OTP Real Estate Investment Fund Management Ltd., says, “The sale of the property in Győr is part of the long-term strategy of OTP Real Estate Investment Fund. We maintain excellent relations with DS Smith, who is the largest tenant of the property, and we are pleased that as a result of our cooperation they will become the owner of the property in the future.”

DS Smith says the acquisition further strengthens its presence in Hungary, where the company operates two additional corrugated box plants in Füzesabony and Nagykáta and four service centers in Tiszaújváros, Nagykáta, Székesfehérvár and Sárvár.

With the transaction, which is expected to close in the first half of this year, DS Smith says it will “secure greater operational control, optimize its cost structure and establish a solid foundation for further growth in Hungary.”

DS Smith describes itself as a provider of sustainable fiber-based packaging worldwide, operating in 34 countries and employing around 30,000 people globally. In addition to producing packaging, DS Smith operates a network of recycling facilities and paperboard mills.