Tetra Pak shutters Singapore facility amid regional consolidation plans

29 Feb 2024 --- Tetra Pak has announced its decision to close its packaging material production facility in Jurong, Singapore, to optimize its global manufacturing footprint. The company plans to consolidate Singapore-based production into other regional factories over the next 12 months.

While the Jurong facility has been operational since 1982, serving local and export markets, Tetra Pak recognizes the necessity to realign its operations to ensure competitiveness in today’s market landscape.

“Market dynamics, such as the rising cost of operations, have changed significantly over the past decades, making it increasingly challenging to maintain a manufacturing site in Singapore,” a Tetra Pak spokesperson tells Packaging Insights.

“We regret that these changes pertaining to the consolidation of Singapore-based production into other factories in the region will affect about 300 employees based in Singapore, mainly in manufacturing. This was a challenging decision for Tetra Pak and was made following an extensive review exploring all possible options. This is part of the company’s ongoing process of optimizing our manufacturing supply chain.”

Despite the closure of the production facility, Singapore will retain its significance as a key strategic business hub for Tetra Pak. The company will maintain core operational functions, including business management, project centers, IT, human resources, finance and marketing in the country.

Consolidations and mergers
Tetra Pak plans to relocate its corporate office to a new location in Singapore by the end of the year. Tetra Pak is making strategic moves to optimize its businesses in a dynamic packaging landscape.

Meanwhile, approximately 300 employees were impacted by the packaging materials factory closure in Jurong. The company has scheduled discussions with them to provide new opportunities or outplacement support.

Tetra Pak is collaborating closely with the Food, Drinks and Allied Workers Union in Singapore and adhering to Tripartite guidelines to ensure a fair and respectful transition for its employees.

“With our robust global supply chain network and always-on customer support, we remain committed to our customers and confident that these changes will have minimal impact on our customers, who can continue to expect the high levels of quality they are accustomed to,” shares the spokesperson.

“Singapore remains a strategic location to serve customers and attract talent to support the company’s global growth. Therefore, we have decided to keep core operational office functions in the country which will be relocated to a new, well-connected and accessible location in Singapore. Singapore will continue to host one of our largest offices in the APAC region with a capacity of up to 250 people.”

The company is making several more strategic investments to boost carton recycling rates across the EU in support of the incoming packaging regulation.

Recently, on the backs of Graphic Packaging offloading its US paperboard manufacturing plant, Packaging Insights highlighted a broader industry trend toward consolidation as companies seek to navigate challenging market dynamics and enhance their competitive positions.

By Radhika Sikaria

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