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Two world packaging kings of the Chinese dispute.
As early as the 1950s, Tetra Pak was one of the first companies to provide packaging for liquid milk, and became one of the world's largest suppliers of packaging systems for milk, juice, and beverages.
At present, Tetra Pak has a total of 77 sales companies in the world, and is licensed to operate 68 packaging material factories and 12 packaging machinery assembly plants. In 2001, the company produced a total of 94 billion packages and supplied 53 billion liters of liquid food products to consumers worldwide.
In China, Tetra Pak supplies packaging materials to several domestic dairy and beverage companies, including Yili, Guangming, Sanyuan, Mengniu, Wahaha, and Huiyuan.
After Tetra Pak China accelerated a few years ago, TetraPak's machines in China with prices as high as 15 million yuan were hardly discounted, but they are now sold for 2 million yuan or even donated for free. The change was due to the emergence of its old rival, the Swiss Industrial Group (SIG), in the Chinese market.
"China has become Tetra Pak's most important market." On February 11, at the opening of a new large-scale warehouse at the Tetra Pak factory in Kunshan, China, Mr. Nick Shreiber, president and chief executive officer of the Swedish Tetra Pak Group, explained China in this way. Changes in market strategy.
The main function of this 6,100-square-meter warehouse is to complement Tetra Pak's expanding production capacity in China. According to the plan, with the completion of two new production lines at the Kunshan plant before the end of the year, the Kunshan plant's production capacity will quadruple. The number of Tetra Pak packaging that can be produced in China has therefore increased from 5.809 billion in 2002 to 7 billion. Its sales revenue in China is nearly 5 billion yuan.
Tetra Pak's large-scale capital increase and expansion in China started last year: In September 2002, Tetra Pak's fourth joint venture in China, Tetra Packaging (Beijing) Co., Ltd. was established, and announced that it invested 570 million yuan in Beijing. A new factory will be established in the Economic and Technological Development Zone. The new plant is expected to be put into production in mid-2004, and the output will be twice that of the original; in October, Tetra Pak (Foshan) Packaging Co., Ltd. has built a new modern production line. , so that the factory production capacity increased by 40%.
“The increased production capacity of the above investments is sufficient to meet the market demand that the Chinese market may grow in the next five years.†Li Huxun, president of Tetra China, is confident.
However, Tetra Pak's ambition for the Chinese market is far more than this, "When all our investments are completed in 2004, the capacity will reach 12.5 billion bales."
To this end, in 2001 the global net sales of 7.65 billion euros Tetra Pak will be a lot of money spread to the Chinese market without hesitation: In 2002, Tetra Head Office approved an investment of about 100 million euros in China. “I have been working for Tetra Pak for 23 years. I have never seen a company invest in so many markets in China as it was in China.†Li Huxun was quite impressed. “To the end of 2004, we were in China. The investment in fixed assets will reach 214 million U.S. dollars."
Tetra Pak’s confidence stems from the "geometric leap" of China's performance in recent years. Since 2000, Tetra Pak China has been growing rapidly at a rate of over 20% annually. Since previous investments “have not been able to catch upâ€, Tetra Pak's products in China are in short supply. “The development of this market in recent years is much faster than we thought, especially in the dairy industry.â€
Last year, Tetra China's sales of packaging materials exceeded 7.7 billion packs. So far, China has become Tetra Pak's largest market in the world in terms of sales volume of packaging materials. In terms of sales, China's current business has also entered the top five, accounting for nearly 6% of Tetra Global. (To be continued)
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