Tetra Pak Inaugurates Chinese Plant Operating on 100 per cent Green Electricity

Tetra Pak invested €60 million to build the plant, bringing total investment in the country to €250 million, with a total capacity of approximately 50 billion packs a year in its four Chinese plants.

08/07/09 Tetra Pak has announced the inauguration of its new packaging material plant in Hohhot, Northern China which operates completely on power from renewable resources - often referred to as ‘green electricity’.

As one of Tetra Pak’s most advanced manufacturing facilities for aseptic carton packages worldwide, the new plant in Hohhot marks a significant milestone in Tetra Pak’s increasing presence in China. Tetra Pak invested €60 million to build the plant, bringing total investment in the country to €250 million, with a total capacity of approximately 50 billion packs a year in its four Chinese plants.

The Hohhot facility is the first manufacturing plant in Inner Mongolia and among the first in China, to exclusively use green electricity. The plant consumes an estimated 20 million kWh of green power annually, which corresponds to an estimated saving of 16,000 tonnes of CO2 a year. The green electricity supplied to Tetra Pak comes primarily from wind power.

"Thirty years ago when China had just started its economic reform, Tetra Pak came here with a strong belief in the country’s market potential. We are grateful for the trust that the Chinese dairy and beverage industry has shown us during this period and for the opportunity of participating in the growth of this industry with our innovative technology and service solutions. Today, China has become one of our largest worldwide markets and will continue to be central to our strategy in the future," said Dennis Jönsson, President of and CEO of the Tetra Pak Group, who presided over the inauguration ceremony with Finn Rausing, member of the Tetra Laval Group board.

"This new plant is another example of our focus on resource-efficient production and our commitment to protecting the environment. By putting leading environmental programmes into every part of our business we believe we will continue to deliver competitive advantages to our customers," said Jönsson.

Said Oliver Rapf, WWF International’s Head of Business and Industry Engagement on Climate Change: "WWF welcomes this agreement between Tetra Pak and the Inner Mongolia Department and Reform Commission. It is another example of the importance of corporate and government collaboration to reduce CO2 emissions."

The inauguration of the new plant coincides with the publication of Tetra Pak’s 2009 Environmental and Social Report, which details the company’s community and environmental goals and initiatives around the world.

As a partner to the WWF's Climate Savers program, Tetra Pak has committed to globally reduce its CO2 emissions by 10% between 2005 and 2010 in absolute terms whilst continuing to grow. Energy use is at similar level as 2002 while the production of packaging material has increased by 32%, according to the report.

In addition to Tetra Pak's progress on its corporate environmental performance, the report details the ongoing support Tetra Pak has provided to the Chinese people in the wake and aftermath of the Sichuan earthquake in 2008. Within days of the earthquake striking, the company donated milk, other beverages, tents and raincoats, reaching 550,000 people and the Tetra Laval board created a special Disaster Relief Fund of USD 15 million (RMB 102.8 million) to assist emergency relief and post-quake reconstruction. In the months that followed a further 26 million RMB was donated to provide emergency foods and living materials.

Other relief operations include the creation of a USD15 million fund to support people affected by the Cyclone Nargis in Myanmar, the donation of 36,000 packages of flavoured milk to charities that organised relief efforts after tropical storms devastated Haiti and a truckload of milk after floods destroyed 40,000 houses and 700 kilometres of road in the Ukraine.