Global food packaging giant Tetra Pak International SA will invest an additional 30 million euros (US$38.7 million) in China to expand production at its Beijing plant, aiming to double annual capacity in its capital factory to 16 billion packages a year.

The company will add a second laminator at the Beijing plant, with the start of production scheduled for first quarter 2007.

"We are confident that with our continued investments in China, our plants will more than meet the demands of our customers, and we will not hesitate to take quick initiatives to put additional investments for capacity expansion where there is a customer need, as we always aim to keep Tetra Pak well ahead of both market demands and our competition," said Dennis Jonsson, Tetra Pak's chief executive officer.

Adding in the 30 million euros, the Sweden-based company's total investment in China will jump to 2 billion yuan (US$250 million).

The company now runs four factories, one each in Shanghai, Beijing, Kunshan in Jiangsu Province and Foshan, Guangdong Province. It controls a major market share in China's aseptic beverage cartons sector by taking advantage of the fast-growing dairy market.

Tetra Pak expects the market to grow by around 15-percent annually in each of the next five years.

"China's dairy and beverage market has been growing rapidly over the past decade," said Liu Yulan, secretary-general of Shanghai Beverage Association.

"In Shanghai, for example, annual growth in the beverage market is about 10 percent, and the diary market hit 20 percent, which is very appealing to overseas packaging giants."

US-based International Paper Co moved its Asia headquarters to Shanghai from Hong Kong last year.

Another global giant, SIG Combibloc International AG, the world's second-largest supplier of aseptic beverage cartons, opened its first plant in China at the end of 2004.

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