Tetra Pak will invest 1.2 million euros in the installation of a modern production line at the Dong Tien Packaging and Paper Company's recycling factory. — Photo Tetra Pak
Swedish food processing and packaging solutions provider Tetra Pak, and Dong Tien Packaging and Paper Company have announced a joint investment of 3.5 million euros to upgrade and expand the recycling capacity of used beverage cartons in Viet Nam.
As part of the deal, Tetra Pak will invest 1.2 million euros in the installation of a modern production line at Dong Tien's recycling factory that separates paper from used cartons in line with European technology standards, expected to be completed in the fourth quarter of this year.
“Supporting the development of local carton recycling capacity is part of Tetra Pak’s roadmap towards a low-carbon, circular economy worldwide," said Eliseo Barcas, managing director of Tetra Pak Vietnam. “This initiative also demonstrates our strong commitment to supporting food and beverage manufacturers in fulfilling their responsibility for collecting used cartons.”
The modern technology line for separating paper from used cartons is expected to double the factory's capacity to 17,000 tonnes per year.
The new line also enables the production of premium recycled pulp that can be used to make products of high commercial value, such as napkins, toilet paper, and office paper, helping to raise the commercial value of used cartons and income for collectors.
This is the first time a foreign packaging solutions company has invested in improving the capacity of Viet Nam’s recycling industry.
With higher-quality recycled pulp at hand, Dong Tien will invest 2.3 million euros in facilities and production lines for kraft paper, which is widely favoured worldwide.
“We expect that once the production line is put into operation at full capacity, it will encourage the habit of collecting used cartons among local people and collectors, motivating society to generate an abundant supply of used cartons, which will sustainably aid our business," said Hoang Trung Son, general director of Dong Tien Packaging and Paper Company.
The F&B market's strong growth and growing consumer awareness of waste sorting and recycling will drive demand for the recycling of used beverage cartons.
However, recycling in Viet Nam has faced many obstacles due to inadequate collection infrastructure, as well as the low quality of output materials, due to out-of-date technology, leading to the low commercial value of recycled products. — VNS