Bolstered by rapid consumption growth and increasing customer needs in the Asia Pacific region, leading food processing and packaging solutions company Tetra Pak today 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, with the 2016 total packed liquid dairy and fruit-based 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 cent 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 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 with 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 greenfield factory, expected to begin operations in Q1 2019, will have an expandable production capacity of approximately 20 Billion packs per annum, across a variety of packaging formats, including the popular Tetra Brik Aseptic and Tetra Fino Aseptic.
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 minimise the environmental footprint, including the utilisation 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, building on the wealth of experience built up throughout the company’s operation in the region.
Together, the factories will enable the company to offer more innovations, efficiency and customer service to meet the rapid growth in Asia.
“We are committed to investing in Australia and New Zealand’s food export business to help our customers tap into the huge opportunities opening up both at home and in the wider region. Our investment in this manufacturing facility means we will be able service our ASEAN markets more efficiently, offering greater innovation, enhanced quality, efficiency and flexibility for producers.” said Craig Salkeld, Managing Director for Oceania, Tetra Pak.