Tetra Pak is investing EUR90m (US$140.3m) in constructing a new packaging material factory in Pakistan and EUR30m in new technology at its materials plant in Brazil.

The food and beverage packaging company said yesterday (24 June) that it is making the investments in a bid to meet growing demand in the dairy and beverage industry.

"These investments demonstrate our continuing commitment to support our customers around the world with best-in-class packaging and processing systems, thus ensuring faster delivery, better quality, greater convenience and increased flexibility," said Alejandro Anavi, executive vice president of supply chain operations at Tetra Pak.

The new Pakistan plant will have an initial capacity of 8bn packages per year, with the possibility of doubling to 16bn. It will be Tetra Pak's largest facility in the Middle East region for the production of packaging material for liquid food products.

Ground-breaking is planned for the third quarter of 2008, with production expected to begin in 2010.

The technology upgrade at the company's Monte Mor plant will include a "state-of-the-art" laminator and a new FlexoPress printing line, to increase capacity by 25%.

During 2008, the Tetra Pak will complete its EUR60m packaging material plant in Hohhot, China with a planned capacity of 8bn packages per year. The factory will primarily serve customers in northern China.