DS Smith Custom Fanfold Packaging Secures Industrial Partnership with ELVIAL in Greece

DS Smith's Strategic Investment in Greek Industrial Packaging

DS Smith has embarked on a focused, multi-year initiative to expand its presence in the industrial packaging sector across Southeastern Europe. The company is investing nearly €34 million over two years, specifically targeting its three Greek packaging facilities. This investment is not a routine upgrade, but a purposeful expansion and modernization effort aimed at increasing sustainable packaging output and supporting the region's shift away from plastic. The anticipated outcome is a substantial 30% boost in production capacity at these sites.

This strategic move is a direct response to evolving market conditions. DS Smith is aligning its operations with rising demand for eco-friendly packaging solutions among its clients. By modernizing equipment and reducing material waste, the company is positioning itself to capture a larger share of the industrial B2B market, where reliability, efficiency, and sustainability are essential.

Innovative Collaboration: DS Smith and ELVIAL

The partnership with ELVIAL highlights DS Smith's commitment to tailored solutions. Together, they developed Fanfold, an innovative packaging method customized for ELVIAL's production and logistics needs. Unlike generic packaging, Fanfold is designed to safeguard heavy aluminium products used in construction, automotive, and medical industries. Its accordion-style, single-sheet corrugated cardboard replaces multiple layers, streamlining assembly and minimizing waste.

This project embodies DS Smith's philosophy of delivering packaging solutions that precisely match customer requirements, advancing supply chain efficiency and sustainability for key industrial partners.

Market Drivers: Industrial Packaging Demand in Greece

Two main factors are fueling demand for industrial packaging in Greece: a broad economic recovery and increased activity in high-value industrial sectors. The most immediate indicator is the surge in aluminium imports, which rose by 7.78% between 2023 and 2024, reflecting robust manufacturing and a post-pandemic rebound. With a compound annual growth rate of 28.88% from 2020 to 2024, the manufacturing sector is not only stabilizing but expanding, driving the need for protective packaging solutions.

Looking forward, the aluminium market is expected to grow at a steady 1.04% annually through 2027. However, this average conceals significant growth in specific segments, particularly for doors, windows, and automotive parts. DS Smith's investment and collaboration with ELVIAL are strategically focused on these dynamic areas of the market.

Meeting Specific Customer Needs

ELVIAL manufactures aluminium products for construction and automotive applications, which are heavy, varied in shape and size, and shipped both domestically and internationally. Their packaging must be durable and adaptable to handle these challenges. The Fanfold solution, featuring an accordion-like design, offers flexibility and robust protection for diverse, heavy goods during transit. DS Smith is not just expanding capacity for a growing market, but delivering a customized solution for a demanding industrial workflow.

Supply Chain and Competitive Positioning

DS Smith's investment is a strategic effort to enhance operational efficiency and secure customer loyalty. The €33.9 million upgrade is aimed at boosting energy efficiency and reducing material waste, while supporting the broader European movement toward replacing plastics. The focus is on smarter, more sustainable packaging that meets regulatory and customer expectations for circular economy practices.

The ELVIAL partnership illustrates this approach. By developing a customized packaging system, DS Smith moves beyond being a commodity supplier. The Fanfold system, with its accordion-like, single-sheet structure, is a closed-loop solution tailored to ELVIAL's production and logistics. This deep integration makes it difficult for ELVIAL to switch suppliers, reinforcing loyalty and securing long-term business.

DS Smith consistently targets specific B2B segments. For example, it previously partnered with Minerva, a Greek clothing manufacturer, to launch a specialized e-commerce return solution. These collaborations focus on solving operational challenges and reducing waste, demonstrating DS Smith's strategy of using innovation to serve niche markets and build a resilient customer base in Greece.

Key Factors and Risks to Monitor

The outcome of DS Smith's investment in Greece depends on several critical factors. The first is the completion of the investment plan. The company has already finalized almost €18 million in upgrades at its Korinthos facility, with the full rollout expected to increase production capacity by 30% over two years. Investors should watch for quarterly updates on capacity expansion, output, and cost efficiency, as these are essential for scaling the ELVIAL partnership.

The success of the collaboration with ELVIAL is another key indicator. Since Fanfold is a bespoke solution, its value depends on ELVIAL's growth and operational priorities. Monitoring ELVIAL's public statements about supply chain improvements, sustainability goals, or production increases will provide insight into the partnership's impact. Positive reports from ELVIAL validate DS Smith's investment, while any slowdown or strategic shift could signal risks to long-term volumes.

Finally, the broader European packaging industry presents both opportunities and challenges. The EU's push for sustainable alternatives, including the upcoming Plastic Packaging Waste Regulation (PPWR) in 2026, is expected to increase demand for fibre-based solutions like DS Smith's. However, the plastic packaging market is projected to continue growing, reaching 8.5 million tons and $35.7 billion by 2035, meaning competition remains fierce. DS Smith's success will depend on its ability to innovate and secure customers ahead of competitors as the shift toward plastic alternatives accelerates.