CHINA> Interview
Tetra Pak: Beijing plant now one of the company's largest
(China Daily)
Updated: 2009-09-10 15:38

Established in 1951, Sweden-based Tetra Pak made its name by introducing hygienic tetrahedral paper packages for use in milk distribution to the mass market. It was a pioneer in the use of this fledgling technology and has since become a global player.

Tetra Pak: Beijing plant now one of the company's largest

Tetra Pak expanded its businesses into liquid food processing equipment, plant engineering, and cheese manufacturing equipment back in 1991. Today, Tetra Pak has 41 sales companies, 43 plants for packaging materials, and 10 packaging machine assembly factories across the world.

With 21,640 employees, Tetra Pak achieved a net sales revenue of 8.83 billion euros in 2008, with its products sold in more than 150 countries and regions. It provided the world's consumers with 70.5 billion liters of liquid food products.

Early in 1979, Tetra Pak entered the Chinese market. Since then Tetra Pak has been firm in its belief in its ability to grow its customer base, whilst leading the market in its bid to safeguard food safety and hygiene standards.

Over the last 30 years, Tetra Pak has been vigorously promoting the development of China's liquid food market and has witnessed dramatic changes to China's dairy industry, particularly since the 1990s.

In order to provide strong support for China's liquids processing industry, Tetra Pak has continuously increased its investment in the country and has set itself a long-term target of building more factories and introducing more cutting-edge technology. To this end, it has relieved heavily on its worldwide resources and its ability to provide innovative problem-solving solutions.

Tetra Pak now has more than 10 branches in a number of China's cities, including Beijing, Shanghai and Hong Kong, as well as packaging material plants in Beijing, Foshan and Kunshan and Hohhot, with a total designed capacity of approximately 50 billion packs a year.

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China is a very important market for the company and it is particularly committed to the development of its facilities in Beijing. It initially opted to establish a presence in the capital's BDA site due to its perception of the quality of the environment and the excellent support for businesses on offer.

In August 2004, it invested more than 600 million yuan in its Beijing factory, giving it a capacity to produce 8 billion packs per year. Throughout this time, the company maintains it received excellent support from the BDA authorities, a major factor in its rapid development.

Tetra Pak then invested an additional 300 million yuan in the further expansion of its factory in Beijing over the next two years. This doubled its production capability to 16 billion packs per year. The Beijing factory is now one of the largest production bases for Tetra Pak.

In February 2007, Tetra Pak established an advanced design conversion center in Beijing, a testament to its belief in the BDA's high-quality services.

Tetra Pak's founder Ruben Rausing has a motto for the company - "A package should save more than it costs". In keeping with this philosophy, the company has long abided by the "4R principal" - renewing, reducing, recycling, and responsibility. From raw material to product design, from production to recycling, all of its activities are based on the concept of environmental protection, an essential element in the factories' successes.

Addressing the significance of the BDA's green credentials, Dmitry Smolin, director of Tetra Pak's Beijing Factory, says: "I come from Russia and have been working in Beijing for nearly two years. I would like to say I love the BDA. I genuinely appreciate its environment and infrastructure. I would number it among the best industrial parks I have ever seen.

"BDA's hi-tech designs make it hard for you to believe that you are actually in an industrial park. Additionally, its convenient transportation facilities and ideal location make easily accessible for both the city's downtown area and the airport.

"Without the support of the BDA, Tetra Pak (Beijing) could never have made so many achievements. If such an enterprise can be compared to milk packaging, I believe BDA resembles nothing so much as a Tetra Pak carton for milk - as it provides all-around protection, support and servicing."

Tetra Pak: Beijing plant now one of the company's largest