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Kenya: Tetra Pak in Sh300m Upgrade
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The Nation (Nairobi)
27 March 2008
Posted to the web 26 March 2008
Philip Wahome
Nairobi
Packaging firm, Tetra Pak Eastern Africa, will invest Sh300 million this year to upgrade its factory capacity in anticipation of growth in the dairy sector.
According to the firm's executive chief executive, Anders Lindgren, the money will be spent on upgrading the different processes in the factory. He said printing, lamination and slitting processes would consume most of the money.
The supplier of packaging material to the liquid food industry in the region, counts on the country's dairy sector as its biggest client since it accounts for 70 per cent of its business. Tetra Pak also supplies filling machines and packaging for juices.
Despite disruptions in the supply chain during January and February due to post-election violence, the company's production was cushioned by its export market's uninterrupted flow.
"Growth in our external markets in the region also helped to offset Tetra Pak's lower sales in Kenya," he said.
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At the height of the post- poll chaos, the dairy sector suffered as milk consumption went down by between 30 to 50 per cent.
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