Latest news with #Swedish-Swiss
Daily Express
05-07-2025
- Business
- Daily Express
Tetra Pak sees big potential beyond Malaysian dairy sector
Published on: Saturday, July 05, 2025 Published on: Sat, Jul 05, 2025 By: Bernama Text Size: Tetra Pak has invested approximately EUR 500 million in research and development over the past five years, underscoring its commitment to innovation, sustainability, and meeting the evolving needs of the global food and beverage industry. HO CHI MINH CITY: Tetra Pak, a Swedish-Swiss multinational food processing and packaging solutions company, sees strong growth potential in Malaysia and across Asia Pacific beyond the milk category, said its president and chief executive officer Adolfo Orive. He highlighted the growing consumer demand for a variety of beverages such as plant-based, fruit juices, coffee, iced tea, protein-enriched, oatmeal and energy products, signalling a broader shift in the local (Malaysia) and regional beverage markets. Advertisement He said that globally, the demand for protein is on the rise, and Malaysia is no exception, protein is becoming increasingly important to consumers. The whole of Asia Pacific is a great source of those new beverage categories, he said. 'Our role is to support a wide range of products tailored to different age groups, lifestyles, and consumption. 'We commit to making food safe and available everywhere, and that is what we have been doing for more than 75 years,' he told Bernama. Additionally, Orive stressed the importance of sustainable packaging, solutions that have a positive impact on the environment—currently, about 70 per cent of Tetra Pak's packaging materials come from renewable sources, contributing to lower carbon dioxide emissions. 'We believe our packaging is already a strong and positive option in terms of sustainability, and we are committed to going further. 'Our goal is to keep investing in innovations that make our packaging even more sustainable for society as a whole,' he said. Tetra Pak has invested approximately EUR 500 million in research and development over the past five years, underscoring its commitment to innovation, sustainability, and meeting the evolving needs of the global food and beverage industry. On July 3, Tetra Pak announced the expansion of its facility in Binh Duong with the launch of Phase 2, following an additional investment of EUR97 million. This follows the inauguration of Phase 1 in 2019, as the company aims to better serve the growing demands of Vietnam and the broader Asia Pacific markets. Serving as a regional production hub, Tetra Pak Binh Duong supplies packaging solutions to Vietnam and several key Asia Pacific markets, including Thailand, Malaysia, Indonesia, Singapore, the Philippines, Australia, and New Zealand. The production capacity at Tetra Pak's Binh Duong facility has now reached 30 billion packs annually. Currently, Tetra Pak operates a local office in Malaysia, which primarily serves all consumers and customers in the country. Among the notable companies using Tetra Pak's packaging in Malaysia are Fraser & Neave Holdings Bhd, Farm Fresh Bhd, and Nestle. Asia Pacific remains one of the world's most dynamic food and beverage markets, valued at US$667 billion (US$1=RM4.21) in 2023 and projected to reach US$900 billion by 2028. Meanwhile, Tetra Pak Malaysia, Singapore, Philippines and Indonesia managing director Michael Wu said the company views Malaysia as a stable and reliable market. 'We see Malaysia as a secure baseline, and each year we target around two to three per cent value growth to stay ahead of inflation. 'At the same time, we see strong potential to drive more innovation here,' he said. Wu noted that many of the products launched by customers in Malaysia have been in the market for years, and there is a clear opportunity to introduce new offerings, especially for younger and more diverse consumer segments. 'Malaysia is uniquely multiracial, with Malays, Chinese, Indians (and other ethnic groups), as well as a growing number of foreign tourists or residents. 'That diversity presents a valuable opportunity to innovate,' he explained. Before its expansion, Tetra Pak's Binh Duong facility supplied only 60 per cent of the packaging materials used in Malaysia. However, following the upgrade, over 95 per cent of the packaging material for the Malaysian market is now produced at the Binh Duong site, he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Sun
04-07-2025
- Business
- The Sun
Tetra Pak sees strong growth potential beyond daily sector
HO CHI MINH CITY: Tetra Pak, a Swedish-Swiss multinational food processing and packaging solutions company, sees strong growth potential in Malaysia and across Asia-Pacific beyond the milk category, said its president and CEO Adolfo Orive. He highlighted growing consumer demand for a variety of beverages such as plant-based, fruit juices, coffee, iced tea, protein-enriched, oatmeal and energy products, signalling a broader shift in the Malaysian and regional beverage markets. Orive said that globally, the demand for protein is on the rise, and Malaysia is no exception, protein is becoming increasingly important to consumers. The whole of Asia-Pacific is a great source of those new beverage categories, he said. 'Our role is to support a wide range of products tailored to different age groups, lifestyles and consumption. 'We commit to making food safe and available everywhere, and that is what we have been doing for more than 75 years,' he told Bernama. Additionally, Orive stressed the importance of sustainable packaging solutions that have a positive impact on the environment – currently, about 70% of Tetra Pak's packaging materials come from renewable sources, contributing to lower carbon dioxide emissions. 'We believe our packaging is already a strong and positive option in terms of sustainability, and we are committed to going further. 'Our goal is to keep investing in innovations that make our packaging even more sustainable for society as a whole,' he said. Tetra Pak has invested about €500 million (RM2.49 billion) in research and development over the past five years, underscoring its commitment to innovation, sustainability and meeting the evolving needs of the global food and beverage industry. On Thursday, Tetra Pak announced the expansion of its facility in Binh Duong, Vietnam, with the launch of Phase 2, following an additional investment of €97 million. This follows the inauguration of Phase 1 in 2019, as the company aims to better serve the growing demands of Vietnam and the broader Asia-Pacific markets. Serving as a regional production hub, Tetra Pak Binh Duong supplies packaging solutions to Vietnam and several key Asia-Pacific markets, including Thailand, Malaysia, Indonesia, Singapore, the Philippines, Australia and New Zealand. The production capacity at Tetra Pak's Binh Duong facility has reached 30 billion packs annually. Currently, Tetra Pak operates an office in Malaysia, which primarily serves all consumers and customers in the country. Among the notable companies using Tetra Pak's packaging in Malaysia are Fraser & Neave Holdings Bhd, Farm Fresh Bhd, and Nestle. Asia-Pacific remains one of the world's most dynamic food and beverage markets, valued at US$667 billion (RM2.8 billion) in 2023 and projected to reach US$900 billion by 2028. Meanwhile, Tetra Pak Malaysia, Singapore, Philippines and Indonesia managing director Michael Wu said the company views Malaysia as a stable and reliable market. 'We see Malaysia as a secure baseline, and each year we target around 2% to 3% value growth to stay ahead of inflation. At the same time, we see strong potential to drive more innovation here,' he said. Wu noted that many of the products launched by customers in Malaysia have been in the market for years, and there is a clear opportunity to introduce new offerings, especially for younger and more diverse consumer segments. 'Malaysia is uniquely multiracial, with Malays, Chinese, Indians (and other ethnic groups), as well as a growing number of foreign tourists or residents. That diversity presents a valuable opportunity to innovate,' he explained. Before its expansion, Tetra Pak's Binh Duong facility supplied only 60% of the packaging materials used in Malaysia. However, following the upgrade, over 95% of the packaging material for the Malaysian market is now produced at the Binh Duong site, he said.
Miami Herald
01-07-2025
- Business
- Miami Herald
Analyst reboots Amazon stock price target on AI growth
Goodness, what's a motherboard to do? Artificial intelligence continues to make its presence felt in just about everything humans do, from setting up appointments and planning itineraries to suggesting what music to listen to and what movies to watch. Don't miss the move: Subscribe to TheStreet's free daily newsletter On the business side, AI is being increasingly integrated into such diverse sectors as healthcare, cybersecurity, finance, retail, and manufacturing. It takes a lot of hardware to run all this stuff, and that can put pressure on companies that make semiconductors, motherboards, and other vital components. The Covid-19 pandemic was a key factor in the 2020-2023 global chip shortage, disrupting supply chains and logistics, while a 13% increase in global demand for PCs sparked by a sudden shift to working from home added to demand. In addition, the U.S. Department of Commerce in September 2020 imposed restrictions on, Semiconductor Manufacturing International Corp., which made it harder for China's largest chip maker to sell to companies with American ties. Bloomberg/Getty Images But by January 2023, Peter Voser, chairman of the chairman of Swedish-Swiss tech and engineering giant ABB told CNBC that the global semiconductor shortage was "being sorted out." Well, yes and no. "Semiconductor supply chains worked well in 2024, even as the industry grew by almost 20%," Deloitte said in its 2025 Global Semiconductor Industry Outlook. "At this time, there's no reason to believe 2025 supply chains will be less resilient, but as always, the risk is there." The study said, "the industry may be more vulnerable to supply chain disruptions than ever before", given how important generative AI chips are expected to be this year and beyond, and the relatively higher concentration of processor, memory, and packaging required for cutting-edge chips, "Although the industry is likely to become less concentrated geographically thanks to various chips acts-and initiatives like onshoring, reshoring, nearshoring, and friendshoring are all still in their early days-the industry remains highly vulnerable for the next year or two, at least," Deloitte said. Onshoring and reshoring involves bringing production back to a company's home country, while nearshoring relocates operations to a nearby country and friendshoring relocates production to countries that are considered allies. Deloitte added that the chip industry "can be notoriously cyclical." "The industry has flipped from growth to shrinkage nine times in the last 34 years," the firm said. "So, it may seem that the industry is seeing less extreme growth or shrinkage in the last 14 years, compared to 1990 to 2010, but the frequency of contractions seems to have increased." Amazon (AMZN) CEO Andy Jassy addressed the issue in May during the e-commerce and entertainment giant's first-quarter earnings call. "Our AI business right now is a multi billion dollar annual run rate business," he said. "It's growing triple digit percentages year over year. And as fast as we actually put the capacity in, it's being consumed." Related: Amazon CEO makes a seemingly impossible promise "I think we could be helping more customers and driving more revenue for the business if we had more capacity," he added. Jassy said that "there are other parts of the supply chain that that are a little bit jammed up as well, motherboards and some other componentry." "But some of that is just because there is so much demand right now," he said. "But I do believe that the supply chain issues and the capacity issues will continue to get better as the year proceeds." Bernstein raised the firm's price target on Amazon on July 1 to $235 from $230 and kept an outperform rating on the shares. The firm noted that the growth of Amazon Web Services (AWS), the company's cloud computing platform, decelerated sequentially in Q1 to +17% year-over-year, while AI contribution continues to grow triple digits year-over-year from a relatively smaller base compared with Azure, Microsoft's (MSFT) cloud-computing platform. Similar to their cloud service provider peers, Amazon remains supply constrained on not only chips, but also motherboards and other components, which has put a near-term cap on topline growth despite strong demand indications. The firm noted Jassy's comments about improving capacity throughout the year. Microsoft suffered a setback when its next-generation Maia AI chip, codenamed "Braga," which was originally planned for mass production in 2025, has been delayed until at least 2026. When the Braga chip goes into production, it is expected to fall well short of the performance of Nvidia's (NVDA) Blackwell chip, Reuters reported. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Time of India
24-06-2025
- Business
- Time of India
From cans to cartons: How Trump's metals duties affect packages on shelves
Andy Russick, who sells canned fruit and tomatoes to top U.S. grocers like Kroger , hospitals and schools, shares the stated aim behind U.S. President Donald Trump 's trade war - fighting cheap Chinese imports. Yet when U.S. tariffs on imported steel and aluminum doubled to 50% on June 4, his company, canned-food maker Pacific Coast Producers , became collateral damage in the crossfire of Trump's erratic trade policies. The problem is that since 2017, Chinese fruit cocktails, vegetables and similar canned-food imports from across Southeast Asia and Europe have been flooding the shelves of U.S. supermarkets, undercutting the price of comparable products from the United States. That trend is now set to accelerate as the cost of the specialty steel used to preserve food jumps by about 6% for Lodi, California-based Pacific Coast, due to the latest round of tariffs on the metal, Russick said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Undo "We're getting caught up in that brush fire," said Russick, vice president of sales and marketing at Pacific Coast, a significant supplier of white label long-life products in the U.S. The new duties on steel and aluminum - metals used in the packaging of food, beverages and personal care products like shaving cream - are sparking a reckoning for companies, who are now facing higher costs, forcing them to look at alternatives like glass, plastic or fiber-based containers. Live Events The makers of alternative packaging, at the same time, see a new opportunity to gain more business. Russick expects in the next few years to shift some packaging to aseptic cartons, like those produced by Swedish-Swiss Tetra Pak and Swiss-listed SIG Group, or to sell more tomato sauce in cheaper foil pouches to restaurants to save on costs. Coca-Cola CEO James Quincey told investors in February, when tariffs on aluminum and steel were set to rise to 25%, that the soft-drinks maker could put more emphasis on plastic if cans became more expensive. "The trade war is fueling the conversation that we need to get rid of aluminum in beverage packages," said SIG Group CEO Samuel Sigrist, whose company offers aluminum-free aseptic cartons. Campbell Co - whose soup cans became famous artworks - said in a statement that it was working to mitigate cost increases from tariffs and will continue to rely on steel cans for packaging. Glass bottle makers are also hoping to win market share from aluminum cans used for beers due to the tariffs, said Scott DeFife, head of the U.S. Glass Packaging Institute, which represents the manufacturers. "If these tariffs persist, tighter margins will eventually force a response," said Zak Stambor, an analyst with eMarketer. "In the longer term, companies may have to rethink their packaging strategies." Pacific Coast's Russick is currently looking to pass along $8 million to $10 million in new costs stemming from tariffs on the specialty steel used for cans to his customers, a figure the company projects to jump to $40 million next year. By next spring, the cost of cans delivered to Pacific Coast for the upcoming harvest may have a 24% tariff-induced cost increase, Russick said. HURDLES But those possible shifts from aluminum and steel to aseptic cartons or glass come with logistical and cost hurdles. Most glass bottles are still costlier than aluminum because they are heavier to ship. Aluminum cans also already have a stronghold in some U.S. beverages: about 64% of beer sold in 2023 was in aluminum cans, according to the Beer Institute. Such cans are also common in fast-growing beverage categories: energy drinks like Molson Coors' Zoa, still-water brands including wildly popular Liquid Death; and pre-mixed cocktails. Much of the aluminum used to make those cans is recycled and not subject to tariffs, said Jack Buffington, director of supply chain and sustainability at First Key consulting, which advises the brewing and beverage industries. The average U.S. beverage can already contains about 71% recycled content, according to the Aluminum Association. The figure could climb higher if U.S. consumers practiced recycling more diligently. Anheuser-Busch InBev's chief financial officer, Fernando Tennenbaum, told Reuters in May, before aluminum tariffs doubled, that the financial impact of levies affecting cans was "not relevant" for the company. AB InBev, which sources the vast majority of its cans in the U.S., had no plans to make changes to its packaging, he said. The company declined to comment for this story. Companies like Coke that already use a variety of packaging may have an easier time responding to aluminum tariffs. By contrast, brewers that have been closing bottling lines to focus on cans would have to make hefty investments to retool their operations, Buffington said. Plastic already makes up nearly 50% of Coca-Cola's packaging globally, according to the company's 2023 environmental report, against 26% for aluminum and steel. Only 8% of rival PepsiCo's products were packaged in aluminum, in 2023, the company said. Coca-Cola and PepsiCo did not respond to requests for comment. Top packaging technology company Krones of Germany, whose products include glass bottling lines, said so far it has not seen any significant shift toward glass. A fast, widespread move to other forms of packaging is unlikely during heightened uncertainty, with companies hesitant to make significant financial or strategic decisions based on policies they think could change, the U.S. Glass Packaging Institute's DeFife said. "I think some people are really waiting to see what sticks, what doesn't stick," he said. "A 30-day thing is not a threat to your supply chain immediately."
Mint
09-06-2025
- Business
- Mint
The Trump effect: ABB sees companies extending clean energy transition targets as a new reality sets in
Swedish-Swiss engineering giant ABB Ltd sees firms across the world move to more realistic targets across sectors for transition to cleaner energy technologies amid sentiments changing globally post Donald Trump's return as US president earlier this year. The company, which is the largest electrical equipment manufacturer in India by market capitalization, sees timelines of transition shifting ahead due to the realisation that the previously set targets were unrealistic, as per a senior company executive. 'I think we were kind of as a global society, a little unrealistic in how fast that transition is going to happen,' said Brandon Spencer, president of ABB's motion business and a member of its group executive committee. Unlike previous transitions where the world moved towards cheaper sources, Spencer argued that this transition is happening because it's good for the planet. 'We see timelines pushed to the right now. I think it has come back to more realism than maybe over optimism,' Spencer said. The expected shift in timelines come amid cuts in climate spending in the world's largest economy. In a recent spending bill introduced and passed by the US Congress, tax credits for low carbon emission sources were eliminated. Moreover, the bill promoted by the Trump administration also cut incentives for electric vehicles. This came months after the US pulled out of the Paris Climate Agreement. Spencer is not alone in seeing climate transition timelines changing. Jérôme Sevin, partner and global lead for energy and process industry at consulting firm Kearney, earlier told Mint in an interview that progress on energy transition will be delayed due to Trump's push for oil and gas production. The US and Europe have targets to turn carbon neutral by 2050. India has set a target of 2070 to turn carbon neutral. Although the wind is changing in the global markets, players like ABB do not see any impact on its business. 'For the motion business in ABB, we supply to every single one of those industries. So, for us and with the diversity that we have, it doesn't matter which one of those is a winner or not, because every single one of them needs motors, drives, generators in order to power that industry forward,' Spencer said. ABB's motion business is mainly in the business of making industrial motors used in powering machinery and equipment at industrial plants. It has four manufacturing units in India and its major customers in the country include Tata Steel Ltd, Witt India, ArcelorMittal, and JSW Steel. In 2024, ABB's motion business posted a revenue of ₹ 4,287 crore in India, up from ₹ 3,785 crore in the year before. Spencer explained that the key point in ABB's pitch has to be the fact that its solutions are not only more sustainable but also the fact that they lead to considerable cost savings. 'We just sold a synchronous motor that's going on a compressor for an Indian steel application. And it's 99.13% efficient, which is leading to $6 million in electricity cost savings across its lifetime,' he said. Another headwind for companies across the world has been the looming threat of the Trump administration's decision to impose reciprocal tariffs across the world. ABB, which works with companies such as INOX, Sulzer, and Ingersoll Rand that export from the Indian market to the US and West Asia, expects its local-for-local strategy will help. About 10% of ABB's total ₹ 12,188 crore revenue came from exports in the Indian market. The company does not disclose how much it exported from its motion business. But its investor presentation post the announcement of financial year 2024 results on 9 May suggested that tariff barriers will remain a challenge to watch out due to its impact on supply chains. 'Our strategy hasn't changed just because the current wind has changed. You know our strategy needs to be more robust than that short of a cycle,' Spencer said. 'We will take care of the local market for growth, but if we can export from here, there is a competitive advantage; we will do that and we will do it wherever it can make sense.'
