SIG invests in second China plant as Asia-Pacific carton demand surges

31 Jul 2019 --- Aseptic carton supplier SIG has invested €180 million (US$200 million) in a second production plant in Suzhou, China. With capacity utilization at the first plant reportedly “high and rising,” the second plant will help to facilitate the increasing demand for aseptic cartons across the Asia-Pacific region. The new plant at the Suzhou Industrial Park (SIP) is expected to be operational in early 2021 and will be situated close to the company’s existing production facility and Tech Centre.

To meet current and future customer demand, the new 120,000 square meter plant will ensure “exceptional delivery on outstanding opportunities in the Asia-Pacific region,” where most countries continue to grow significantly. The plant is expected to achieve “world-class” environmental, safety and operational performance.

Many emerging markets, such as China, India and Indonesia, are undergoing rapid urbanization and modernization. These countries are experiencing vast demographic and social shifts, including an increasing number of women entering the workforce and average population ages far lower than in developed markets. These are just some facets contributing to the unique opportunity emerging markets present to the packaging industry.

SIG's new Suzhou production plant, its second in China.Across Asia, millions of people are only now starting to consume packaged food and beverages. The rise of new consumers, driven by increasing income, changing lifestyles and new consumption habits, represents a huge opportunity for aseptic carton packaging with its long shelf-life without the need of a cooling chain.

At the same time, young and growing populations are adopting modern lifestyles in urban areas, with more on-the-go consumption, increasing awareness of health and wellness, and growing demand for high-quality nutritional food and beverage products.

The consumption trends in the Asia-Pacific region will put SIG in a strategically advantageous position to benefit from the mega-trends, including favorable demographics, convenience and urbanization, which will drive resilient and consistent growth, Ingo Buettgen, Head of Corporate Communications at SIG, explains to PackagingInsights.

“In some of our new markets in the Asia-Pacific region, the key is affordability and we engineer solutions that help to achieve retail prices which are accessible to millions of new consumers,” Buettgen says.

In other markets – such as China – there is a clear move towards premium products, particularly in the area of single-serve beverages to be consumed on-the-go, he says.SIG's drinksplus technology makes it possible to aseptically fill carton packs with beverages containing pieces of fruits, vegetables, nuts or grains.

SIG continues to establish its presence within the Asia-Pacific, on-the-go market. For example, last year the supplier launched its Heat&Go pack: a microwaveable aseptic carton designed specifically for on-the-go consumption of liquid dairy, non-carbonated soft drinks and broth with low viscosity products. The Heat&Go carton found its first customer in South Korea’s Seoul Dairy Cooperative (SDC), who are using the pack for its “Achimae” Soymilk (meaning Morning Soymilk).

Similarly, SIG drinksplus technology makes it possible to aseptically fill carton packs with beverages containing pieces of fruits, vegetables, nuts or grains – adding extra value to the product. Such beverages are high in demand, especially in Asia, because they function as healthy on-the-go meals replacements.

The increased automation at SIG’s new plant will lead to the highest net speeds within the SIG plant network as well as productivity improvements. The optimized plant layout will also reduce material handling cost, Buettgen notes.

“In the future, we will continue to place new fillers in the region and, with our new plant and the recently opened SIG Tech Center, will be very well placed to serve existing and new customers,” he adds.SIG Heat&Go is a microwaveable aseptic carton designed specifically for on-the-go consumption of liquid dairy.

SIG says that the new production facility is a testament to its strong partnership with SIP and the local government, as well as its unparalleled commitment to delivering the most modern solutions to the rapidly growing Asian markets and China in particular. SIG’s recently opened cutting-edge Tech Centre in Suzhou supports customer collaboration in the development and implementation of innovative product concepts and market-ready packaging solutions.

“The food and beverage market in Asia has seen continuous growth and is expected to continue on that path,” comments Rolf Stangl, CEO at SIG. “Our new production plant will ensure we continue to excel at bringing new and exciting product and packaging concepts to market, quickly and efficiently.”

“Together with our Tech Centre close by, the new plant is another pivotal moment for SIG in Asia. We will grow our business in the APAC region, but also expedite true beverage and dairy innovation for our customers, so they can quickly adapt to the changing lifestyle needs of Asian consumers,” Stangl concludes.

By Joshua Poole