Tetra Pak Expands Footprint with US$110 Million Vietnam Factory

15 Nov 2016 --- Bolstered by rapid consumption growth and increasing customer needs in the Asia-Pacific region, Tetra Pak have 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 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 expansive coverage and scale. This decision is a strong reflection of our commitment to the region and our firm belief in its future potential.”  
 
Expected to commercialize operations in Q1 2019, the factory 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 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, building on the wealth of experience collected throughout the company’s historical tenure. Together, the factories will enable the company to offer more innovations, efficiency and customer service to meet the rapid growth in Asia.  
 
Zacka said: “Tetra Pak is dedicated to consistently ensure the best quality and service for our customers. With the new factory and the ongoing investments in our existing factories, we will further strengthen our world-class operations in the region, allowing us to serve our customers faster and better” added Michael. “With an extremely positive growth outlook in Asia, we are excited about the future and our role in shaping the packaging industry.”