Tetra Pak’s local base will back-end constant growth

Tetra Pak plans to build a paper carton industrial unit in the southern province of Binh Duong

This factory, according to Robert Graves, managing director of Tetra Pak Vietnam, is state-of-the-art and expected to start commercial operations by the second quarter of 2019.

“With a rapid growth in food and beverage manufacturing, we saw that it was high time for Tetra Pak to set up our first factory here in Vietnam,” Graves told VIR.

Graves’ analysis showed rapid consumption growth and increasing customer needs in the Asia-Pacific region and Vietnam in particular, which was a main factor in Tetra Pak’s decision to set up this factory.

“After more than 20 years of doing business in Vietnam, we have had the honour to work with many liquid and solid product manufacturers who have successfully operated in Vietnam using our packaging products. We have decided to set up our first factory in Vietnam – the fourth in the region after three previous ones in India, Japan, and Singapore,” he said.

The investment 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, according to Tetra Pak’s report.

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 compared to other packaging forms such as bottles and cans.

Situated in Binh Duong, approximately 30 kilometres north of Ho Chi Minh City – the country’s economic hub – the plant will be ideally positioned to meet the demand for packaging materials for food and beverage manufacturers in Vietnam, other ASEAN countries, Australia, and New Zealand.

“For manufacturers based in Vietnam, the new factory will bring a host of unprecedented benefits, such as consistent supply, reduced lead time, efficiency, and flexibility,” said Graves.

Graves confirmed that 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.

“The new factory reflects Tetra Pak’s confidence in the local economy, and will cater to a rise in domestic consumption for healthy, ready-to-drink beverages among the country’s growing middle-class,” added Graves.

In Vietnam, the dairy category – the country’s biggest category and a core business for Tetra Pak – is projected to grow steadily, with per capita consumption potentially doubling to 28 litres by 2020 from 15 litres in 2010.

Tetra Pak estimates that the country consume a total of 3.3 billion litres of packed liquid dairy and fruit-based beverages in 2016. It foresees an average growth of 6.5 per cent per annum during the 2016-2019 period.

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