UK-based sustainable packaging company DS Smith has announced it will invest in two new advanced packaging sites in Europe.

The company stated that the facilities in Belchatov, Poland, and Castelfranco Emilia, Italy, are expected to improve the local economy.

The £100m ($138m) combined investment was announced in response to increasing customer demand, and comes after DS Smith recorded significant growth over the past three years. The company said that the investment supports its plans for further organic growth.

The two facilities are expected to begin operations in the next two to three years.

DS Smith said: “With the sustainable paper-based packaging market expected to grow significantly as a result of increased adoption of e-commerce and continued expansion in traditional food and drink markets, the new sites will provide much-needed capacity.

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“We are well-positioned to respond to these trends, with 85% of our overall offering focused on consumer goods. Through our focus on recyclable, paper-based packaging, we can also respond to market requirements for solutions to replace single-use plastic.”

The facilities will feature new manufacturing technology, innovation and sustainable performance.

DS Smith supplies sustainable packaging solutions, paper products and recycling services, operating in more than 30 countries and employing more than 30,000 people.

Last month, the company introduced a fully recyclable modular container for grocery stores and consumers.