Competition in China’s bacteria-free paper-packing market has become more intense, with the consumption upgrade driving a rapid change in the market and the rise of domestic players. Sweden-based paper packing giant TetraPak used to hold about 90 percent of the bacteria-free paper packing market in China, and now its market share is decreasing to about 60 to 70 percent, according to industry projections…Full Article: China Daily Sept 2017

Key Points

  • In China, key competitors of Tetra Pak include Beijing’s Greatview Aseptic Packaging (plastic wrap and food packaging), and Germany’s SIG Combibloc Group AG (carton packaging and filling machines). As of mid-2017, Greatview had a 13% share of the Chinese food packaging market and its customer base included Nestle SA, Danone SA, Lactalis Group, Yili Group, and Mengniu Dairy. The company plans to establish a factory in Germany and expand internationally via China’s Belt and Road Initiative.
  • In July 2017, Sweden’s Tetra Pak shuttered its factory in Foshan, Guangdong Province. Tetra Pak still has Chinese packaging factories in Kunshan (Jiangsu province), Huhhot (Inner Mongolia Region), and Beijing.

ChinaAg Comments

  • In November 2016, China’s State Administration for Industry and Commerce (SAIC) fined Tetra Pak CNY 668 million (USD 97 million) for violating anti-monopoly laws.
  • Founded in 2002 and headquartered in Beijing, CDH Investments is a private equity firm. As of early 2016, CDH Investments had invested in China Modern Dairy (HKG:1117), WH Group (HKG:0288), China Mengniu Dairy (HKG:2319), and Greatview Aseptic Packaging Company (HKG:0468).
  • In June 2005, CDH Investments invested in Greatview Aseptic Packaging Company (HKG:0468). In 2006, USA’s Bain Capital invested in Greatview and sold its stake in February 2013.
  • Founded in 2001 and headquartered in Beijing, Greatview Aseptic Packaging Company (HKG:0468) is a manufacturer of food packaging and packaging equipment. Its end users include dairy, juice, and other beverage producers. The company originated from Shandong Province’s Tralin Paper Group.

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