Tetra Pak, the Sweden-based food processing and packaging solutions company, and Dong Tien Packaging and Paper Co., Ltd have announced a co-investment of 3.5 million euros to upgrade and expand the recycling capacity of used beverage cartons in Vietnam.
In particular, 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.
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| After upgrading, the factory's capacity is expected to increase to 17,000 tons/year__Photo: Tetra Pak |
This is a very significant investment, as it is the first time a foreign packaging solutions company has invested in promoting the capacity of Vietnam’s nascent recycling industry.
“Supporting the development of local carton recycling capacity is part of Tetra Pak’s roadmap toward a low-carbon, circular economy worldwide," said Mr. 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 milk cartons is expected to approximately double the factory's capacity to reach 17,000 tons/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, thereby helping raise the commercial value of used cartons and income for collectors.
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 favored worldwide.
“We aim at modernizing the paper recycling line to create world-class recycled paper products, contributing to improving the industry’s overall recycling capacity and creating higher value for collectors. 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, thereby motivating the whole society to generate an abundant supply of used cartons, which will aid our business in a sustainable way," said Mr. Hoang Trung Son, General Director of Dong Tien Packaging and Paper Co., Ltd.
The F&B market's strong growth and consumers' growing awareness of waste sorting and recycling will drive demand for the recycling of used beverage cartons. However, recycling in Vietnam faces the obstacle of 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.
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| Supporting the development of local carton recycling capacity is part of Tetra Pak’s roadmap towards a low-carbon, circular economy worldwide__Photo: Tetra Pak |
In addition, as extended producer responsibility (EPR) regulations related to product waste, including used packages, have been put into practice since January 1st 2022, developing an end-to-end recycling eco-system is of great significance in assisting food and beverage manufacturers in meeting government regulations.
Mr. Tran Quang Trung, President of the Vietnam Dairy Association, said: “The government has recently introduced new environmental regulations placing responsibilities on manufacturers for reclaiming and recycling their sold packages to protect the environment and head toward building a circular economy. This regulation will certainly bring many challenges to dairy manufacturers as it is involved with sorting, collection and recycling infrastructure, which is still very poor in Vietnam. Therefore, we greatly appreciate a passionate and experienced partner like Tetra Pak improving recycling infrastructure and sharing the responsibility of building a sustainable environment. The promotion of recycling will also enable manufacturers to build products that are considered environmentally friendly in the eyes of partners and consumers, thereby increasing their competitive edge in the market.”-
