DS Smith Paper Zarnesti: maintaining agility in long-term investments

As the largest producer of paper for the packaging industry in Romania, using 100% recycled paper as its raw material, DS Smith Paper Zarnesti has big plans in terms of sustainability. Marius Juncanariu, the General Manager of DS Smith Zarnesti, talked to Business Review about the company’s achievements so far and its development strategy for the local market.

By Anda Sebesi

2023 was a major year for DS Smith’s operations in Romania. How would you briefly describe it and what would you say generated this positive development?

We’ve had a strong 12 months here in Zarnesti and the primary driver has been our wonderful team. We’re working more closely than ever across our operations covering Paper, Recycling, and Packaging and that allows us to deliver a complete solution to our customers.

Read more about

One United Properties: developments that reshape life in the city

read more

The mill celebrated its 170th anniversary, and after five years of DS Smith ownership, we’re starting to see returns on our EUR 11 million investment plan that commenced in 2020. The pandemic brought a rise in e-commerce, and coupled with organisations and consumers demanding more sustainable packaging solutions, this means demand for paper-based packaging is higher than ever. Paper’s ease of recyclability means that it has an important role to play in achieving a more circular economy.

What were the biggest challenges DS Smith faced as a business in 2023?

Outstanding performance is key for all businesses—and we are no different. Despite the challenging economic environment and fluctuations in demand, we’ve remained agile and continued to invest for the long-term to support our customers and improve productivity and efficiency.

DS Smith has ambitious targets to achieve a 46% reduction in CO2 emissions by 2030, compared to 2019, and to reach Net Zero emissions by 2050. As one of 12 DS Smith paper mills in Europe, Zarnesti has a massive role to play in helping us meet that target. We’ve worked hard this year in ensuring we play our part here in Zarnesti, with the opening of our new wastewater treatment plant being an important moment. Alongside these large projects, we have focused on improving energy efficiency in our day-to-day operations.

What were the most important projects the company carried out in 2023?

The opening of the new wastewater treatment plant was a massive moment for us this year. It contributes to increasing the mill’s paper production capacity while reducing its operational impact on the environment, including reducing freshwater consumption by up to 20% and technical waste quantity by 60%. The plant will also contribute to decreasing both gas consumption and greenhouse gas emissions, with projected CO2 savings of up to 4,500 tonnes per year. In conjunction to this investment, we’ve seen likewise in our box plant in Ghimbav and the opening of a new recycling depot in Stefanesti. And of course, we continue to be involved in our community with our educational and biodiversity initiatives with local schools, charities, and other organisations.

What is the current state of Romanian paper manufacturing and what changes should we expect to see in the coming years?

The paper manufacturing market is linked to packaging development in the area, and DS Smith has an ambitious growth plan in Romania and Eastern Europe. We recently announced an EUR 13 million investment to increase capacity at our Ghimbav packaging site while also reducing the site’s gas consumption and CO2 emissions, supporting our customers’ sustainability targets. We continue to focus on cost optimisation and efficiency, as well as on serving our customers by innovating new products and delivering high-quality paper.

How important are ESG and sustainability criteria for DS Smith?

Sustainability is at the core of everything we do, and we are taking action to lead the transition to a low carbon, circular economy through the four focus areas in our Now & Next Sustainability Strategy: Circularity, Carbon, People & Communities, and Nature.

DS Smith Paper Zarnesti is the largest producer of paper for the packaging industry in Romania, using 100% recycled paper as raw material. Our business model is based on the key principles of a circular economy: designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. Through our recycling, paper, and packaging operations, we have the ability to make, use, collect, and recycle cardboard packaging in less than 14 days.