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Tetra Pak invests $110m in Vietnam factory

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By Rachel Arthur+

Last updated on 15-Nov-2016 at 13:00 GMT2016-11-15T13:00:13Z

Tetra Pak already has production facilities in Singapore, India and Japan
Tetra Pak already has production facilities in Singapore, India and Japan

Tetra Pak is investing in a new regional manufacturing facility near Ho Chi Minh City, Vietnam, prompted by increased consumption of liquid dairy and fruit-based beverages across Asia Pacific. 

In 2016, the total packed liquid dairy and fruit-based beverage intake is 70 billion litres across ASEAN member states, South Asia, Japan, Korea, Australia and New Zealand. These markets are expected to grow at 5.6% per annum over the next three years.

Tetra Pak believes products in cartons will grow at a faster rate compared to glass bottles and cans.

The $110m facility, which is expected to start operations in 2019, will be Tetra Pak’s fourth packaging material factory in the region.

Rapid growth in Asia

The factory will have an expandable production capacity of approximately 20 billion packs a year across a variety of packaging formats, such as Tetra Brik Aseptic (carton for long-life liquids, including milk and juice-based products) and Tetra Fino Aseptic (carton pouch). 

Tetra Pak explained the facility will have “a strong focus on sustainability, adopting a host of global best practices to minimize the environmental footprint, including the utilization of a high proportion of renewable energy sources.”

It will complement Tetra Pak’s existing production facilities in Singapore, India and Japan.

Michael Zacka, regional vice president, Tetra Pak South Asia, East Asia and Oceania, said: “Together, the factories will enable the company to offer more innovations, efficiency and customer service to meet the rapid growth in Asia.” 

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