DS Smith proposes £20m Kemsley investment and closure of PM4

DS Smith has proposed a £20m investment at its Kemsley Paper Mill in Kent, UK, alongside the closure of PM4, which could result in redundancies at the site.

Under the proposals, DS Smith would invest £20m in PM6 to modernise and expand its capabilities, enabling the machine to produce new paper grades at increased production volumes.

The company said the changes reflect evolving conditions within the paper and packaging market and are intended to improve the mill’s competitiveness and ability to meet customer requirements.

The proposed closure of PM4 would affect the number of roles required at Kemsley, although the number of potential redundancies has not yet been confirmed. Consultation with employees and union representatives is underway.

“We are announcing a significant investment proposal for the Kemsley Paper Mill to ensure we are delivering the right products to our customers and remain cost competitive,” said Rogier Gerritsen, Managing Director of Paper. “At the same time, we recognise how difficult part of these proposals will be for some of our colleagues and our immediate focus is on supporting them through a formal consultation process.”

The latest proposal follows a £48m investment announced in 2024 to upgrade the mill’s fibre preparation line.

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