DURBAN - SWEDISH company Tetra Pak announced yesterday that it would be investing R500 million between this year and August 2023 to upgrade and increase the production capability of its packaging material factory in Pinetown.
Stefan Fageräng, managing director of Tetra Pak South Africa, which is responsible for carton-based products for several companies, said while the investment was primarily a business decision, it also represented a morale booster for the province of KwaZulu-Natal and South Africa.
The event to announce the investment was also attended by KZN Premier Sihle Zikalala; MEC of Economic Development, Tourism and Environment, Ravi Pillay; and the chief whip of eThekwini Municipality, Sibongiseni Mkhize.
Fageräng said the company had factored in the planning of how the expansion plans could boost other short-term jobs such as the local construction industry.
“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.”
He added that the company had stepped up its investment and innovation efforts to address the need for greater consumption of food while reducing the impact on natural resources.
“We are committed to play our part in making food systems more secure and sustainable. Together with our customers, partners, NGOs and the government, we want to address three key challenges: access to safe and nutritious food; reduction of food and water loss; and building a sustainable food value chain. We see this investment as a big step in that direction.”
In addition to adding 120 to the existing 300 employees, the company said the plant upgrade would add benefits to many sectors in the liquid food industry value chain.
Zikalala said the investment would increase diplomatic ties between the Swedish government and South Africa, and serve as a springboard for other companies to invest in the province and local economy.
He said the local government had lobbied the company over several months as part of the provincial Economic Recovery and Transformation Plan, adding that the expansion would enable 20 new technical professionals to be employed.
“The investment is a vote of confidence by the Tetra Pak group in the resilience and resurgence of the economy of KZN following the Covid-19 pandemic and related socio-economic challenges. Critically, this confirms
Tetra Pak’s long-term commitment to the province.
“The expansion overall 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.”
Waqas Ali, factory director at Tetra Pak SA’s Pinetown plant, said the upgrade would enable an increase to 80% in local content. He said this would not only assist the local supply chain, but lead times for delivery to clients would also fall considerably, and in some cases dramatically.
“Our clients will benefit from far greater agile and responsive processes. With the new state-of-the-art plant, should a customer need to respond to market changes, we will in future be able to deliver a quick turnaround.
“Our global intent is to be carbon neutral by 2030 and we have a company with the ambition to launch the world’s most sustainable package made from renewable materials. By making this investment, 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.
“It will also bring closer the possibility of using sugar cane as a raw material for bio-based plastic material, which we hope will soon be locally produced,” said Ali.
THE MERCURY