Tetra Pak to Spend $110 Million for New Carton Plant in Vietnam
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Tetra Pak, Sweden, this past week announced it will invest $110 million in a new plant in Vietnam near Ho Chi Minh City, aiming to tap growing demand across the Asia-Pacific region. The plant 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 company already operates 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 VP 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.
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 Tetra Pak. 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.
