Juwin,
I am aware of other solutions to store more than 255 characters in general but they do not apply in the current scenario because, the ETL tool is just extracting the data from the SAP table as is and generating a code 
. Had it been a report confined to SAP alone, then I would have looked into either using a text object or LCHR. But none of these work when ETL extracts the table.
Thanks,
Pavan