Packaging material plant to be built in China

Food manufacturing packaging provider, Tetra Pak, is to build an EUR 60 million, 8 billion packages/year plant to support the growing Chinese dairy and beverages industry.

Tetra Pak, one of the world's leading processing and packaging solutions providers for food manufacturing, has announced plans to invest EUR 60 million (RMB 616 million) in a state-of-the-art packaging material manufacturing plant in Hohhot, China, to support the country's growing dairy and beverage industry.

With a planned capacity of 8 billion packages/year, this new facility will be a strategic addition to Tetra Pak's existing production capacity.

The new plant will break ground in mid-2007 and is scheduled to start operation in the fourth quarter of 2008.

This latest announcement brings Tetra Pak's accumulated investment in China to more than EUR 250 million.

Said Tetra Pak CEO Dennis Jonsson during a visit to Hohhot: "This investment is a further demonstration of our commitment to helping customers grow their dairy and beverage industry with our unique offering of processing and packaging solutions, on-the-ground support and more than 50 years of market experience.

Tetra Pak is focused on providing customers with best-in-class production systems, lead time and service." Added Tetra Pak China managing director, Hudson Lee: "This factory will primarily serve our customers in the north, freeing up capacity in our southern factories for customers in adjacent regions.

With a larger production footprint, we will offer faster delivery and increased flexibility for customers all over China." Tetra Pak estimates that the Chinese dairy industry will grow an average of 15% over the next five years.

"We welcome Tetra Pak's investment in Hohhot, the 'Dairy Capital' of China'," said Tang Ai Jun, mayor of Hohhot city.

"We believe the establishment of such a modern facility will greatly boost the development of our dairy industry and aid local farmers." Employing World Class Manufacturing processes, the new plant will feature the most advanced technologies and equipment in the world to produce such popular carton packages materials as the Tetra Brik Aseptic (TBA) and Tetra Fino Aseptic (TFA).

Other Tetra Pak plants in China are located in Kunshan, Foshan and Beijing, where Tetra Pak previously announced a EUR 30 million investment to double annual production capacity to 16 billion packages.

* About Tetra Pak - as a world leading company in food processing and packaging, Tetra Pak's motto 'protects what's good' reflects the philosophy upon which we conduct our business in order to make food safe and available, everywhere.

Operating in more than 165 markets with over 20,000 employees, Tetra Pak believes in responsible industry leadership, creating profitable growth in harmony with good corporate citizenship and a sustainable approach to business.

We work closely with our suppliers and customers on preferred processing and packaging solutions to provide convenient, innovative and environmentally sound products to millions of people worldwide.

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