Tetra Pak plans US$33.9m investment in South African factory to enhance its sustainability profile

SOUTH AFRICA – Tetra Pak, world’s leading food processing and packaging solutions company, has earmarked R500 million (US$33.9m) investments to upgrade and increase the production capability of its factory located in Pinetown-KwaZulu-Natal, South Africa.

This investment reinforces the company’s commitment to the growth and success of the local operation and is a testament to the company’s vision “Make food safe and available, everywhere”.

According to Tetra Pak, the upgrade will take place over a period of several years, commencing in the first quarter of 2022.

Tetra Pak South Africa, which is responsible for carton-based products for several companies, has indicated, while the investment is primarily a business decision, it also represented a morale booster for the province of KwaZulu-Natal and South Africa.

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Stefan Fageräng, Managing Director of Tetra Pak South Africa says, In addition to benefiting our customers, upgrading our Pinetown plant presents numerous possibilities for the communities around us. This investment will have a positive impact on local farming communities, suppliers of raw material, and the services in the local community.”

Following the upgrade, the Pinetown factory would be Tetra Pak’s Southern African hub, enabling it extend its reach to serve more customers in the region.

Featuring state-of-the-art technology, the factory will allow the production of the latest sustainable packaging formats made from renewable materials.

Located at the heart of sugar production in the country, reports by Fin24 have indicated that Tetra Pak is mulling use of sugarcane as raw material for locally produced bio-based plastic material.

Also, it will use alternative green sources of energy to power the facility, while using less energy and water resulting in lower carbon dioxide emissions.

This is in line with the company’s global ambition of becoming carbon neutral by 2030 and launch the world’s most sustainable package made from renewable materials.

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“Tetra Pak has stepped up its investment and innovation efforts, joining forces across the board to address the need for greater consumption of food while reducing the impact on natural resources.

“By making this investment in South Africa we are making it possible to produce these breakthrough products locally and to ensure that they get recycled and reused, as part of the circular economy,” says Stefan.

Overall, the upgrade will enable the company realise an increase to 80% in local content and speed up deliveries to clients.

Premier Sihle Zikalala of the KwaZulu-Natal provincial government said, “This investment is a vote of confidence by the Tetra Pak group in the resilience and resurgence of the economy of KwaZulu-Natal following the Covid-19 pandemic and related socio-economic challenges.

“Critically, this confirms Tetra Pak’s long-term commitment to KwaZulu-Natal, and it taps South Africa as a key manufacturing hub with the capacity in infrastructure and skills to serve all the Southern Africa markets.

“We welcome this injection of half a billion rand into our economy which will certainly foster economic growth and boost much-needed jobs in the province”.

Tetra Pak is committed to play a part in making food systems in South Africa more secure and sustainable.

Together with its customers, partners, NGOs and the government, the company aims to address three key challenges; access to safe and nutritious food, reduce food and water loss and build a sustainable food value chain.

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