Tetra Pak is investing EUR60m (US$80m) in the building of a packaging material manufacturing plant in China.  

The packaging giant said the facility would be situated in the city of Hohhot, the capital of China's Inner Mongolian Automonous Region.

Tetra Pak said the plant is due to come on stream in the fourth quarter of 2008 and will have a planned capacity of 8bn packages per year. The factory will primarily serve customers in northern China.

The move brings Tetra Pak's investment in China to over EUR250m. The company already has plants in the cities of Kunshan, Foshan and Beijing.

CEO Dennis Jönsson said the investment was "a further demonstration of our commitment to helping customers grow their dairy and beverage industry with our unique offering of processing and packaging solutions".