Industry News
Tetra Pak pours $110m into new Vietnam packaging plant

SINGAPORE -- European food processing and packaging company Tetra Pak on Tuesday announced it will invest $110 million in a new plant near Ho Chi Minh City, aiming to tap growing demand across the Asia-Pacific region.

Tetra Pak's new Vietnam plant will help it meet growing demand for beverage cartons in the Asia-Pacific region.

The Vietnamese facility is expected to open in the first quarter of 2019. It will produce cartons for various beverages, including dairy products and juices, with an output capacity of up to 20 billion packs per year. This will be Tetra Pak's fourth and largest plant in the Asia-Pacific region; the Sweden-born company already runs factories in Japan, Singapore and India.

The cartons made in Vietnam will mainly go to customers in Southeast Asia, Australia and New Zealand. Michael Zacka, Tetra Pak's regional vice president for South Asia, East Asia and Oceania, said in a statement that the company has an "extremely positive outlook in Asia" and will continue to invest in its existing factories in the region.
 
The Vietnamese facility will produce cartons for dairy products and juices.

Total consumption of packed fruit-based and dairy beverages across the Association of Southeast Asian Nations, Japan, South Korea, South Asia, Australia and New Zealand will reach 70 billion liters this year, according to the company. The figure is expected to grow at an annual pace of 5.6% over the next three years.

Tetra Pak expects demand for paper-based beverage cartons to rise at a much faster rate than other packaging types, such as glass bottles and cans.

Tetra Pak is upping its investments to capitalize on emerging-market opportunities. Earlier this month, the company signed a deal with Dubai-based Binghatti Holding to receive approximately $6.8 million in financing to develop packaging and filling lines at an Abu Dhabi factory. The facility is expected to begin commercial production of Binghatti-branded juices next year, catering to consumers in the Middle East and North Africa.

Source: http://asia.nikkei.com/

Nov/2016

 
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