Tetra Pak expands regional manufacturing footprint with US$110 million factory

General Press Releases Monday November 21, 2016 15:00
Bangkok--21 Nov--Hill & Knowlton

Bolstered by rapid consumption growth and increasing customer needs in Thailand and the Asia-Pacific region, Tetra Pak®, the world's leading food processing and packaging solutions company, announced their US$110 million investment in a state-of-the-art regional manufacturing facility near Ho Chi Minh City, Vietnam, to serve customers across the region.

The move is prompted by increasing consumption volumes in liquid dairy and fruit-based beverages in 2016. In Thailand, the overall consumption is 3.6 billion litres which equates to ~ 50 litres per capita consumption. The same development is reflected across Asia-Pacific with the total packed beverages intake at 70 billion litres across ASEAN, South Asia, Japan, Korea, Australia and New Zealand. Additionally, over the next three years, these markets are likely to grow at a healthy 5.6% per annum, with products packed in Tetra Pak cartons projected to grow at a much faster rate as compared to other packaging formats such as glass bottles and cans.

"Tetra Pak has been present in the region for decades, with our first factory set up in Gotemba, Japan in 1971" said Mr. Michael Zacka, Regional Vice President, Tetra Pak South Asia, East Asia and Oceania. "Over the years, we have seen substantial growth of our products, driven by a wide portfolio and a number of innovations that we have introduced in the market. Hence our investment in a new plant, which will be our fourth Packaging Material factory in the region, providing us expansive coverage and scale. This decision is a strong reflection of our commitment to the region and our firm belief in its future potential"

The factory, expected to commercialize operations in Q1 2019, will have an expandable production capacity of approximately 20 Billion packs per annum, across a variety of packaging, including Tetra Brik Aseptic, one of the most popular formats among Thai customers for the past 30 years. It will primarily serve customers based in ASEAN, Australia and New Zealand. With a strong focus on sustainability, the site will adopt a host of global best practices to minimize the environmental footprint, including the utilization of a high proportion of renewable energy sources.

This investment will complement Tetra Pak's three long-standing production facilities in Singapore, India and Japan. Together, the factories will enable the company to offer more innovations, efficiency and customer service to meet the rapid growth in Asia.

"For Thailand, this regional factory will represent multiple benefits which include consistent supply, reduced lead times, enhanced quality, efficiency and flexibility for our Thai customers. Having a factory of this calibre and capacity so close to Thailand is hugely beneficial and also represents Tetra Pak's long-term investment in Asia," says Mr. Henrik Hauggaard, Managing Director of Tetra Pak (Thailand) Ltd. and Cluster Leader Sales Management of Tetra Pak South Asia, East Asia & Ocean


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