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Tetra Pak, a leading company in food processing and packaging has announced that it is closing down its plant in the Netherlands due to declining demand and over capacity from other Tetra Pak plants in the Central and Northern Europe region.
Continuing weak demand for beverage cartons throughout Europe has resulted in significant overcapacity in several factories Tetra Pak, with more than 16% lower sales in the Central and Northern European region in 2013 compared to 2007.Tetra Pak sees the proposed closure of the Netherlands plant – with the ever-growing competition – a crucial step in order to remain competitive regionally strong and ensure the long-term growth in Europe, the company said in a statement.
The production plant in Moerdijk part of the Netherlands is the only roll-fed Tetra Pak factory worldwide that provides offset printing technology. Since the successful pilot of a new printing technology, Tetra Pak can not offer a similar quality printing technique using existing flexo printing process at different factories worldwide soon. With the imminent rollout of the new technology, the company expects production would stop in late 2014.
Tetra Pak has almost 22,000 employees across 85 countries in the world and serves people in more than 170 countries around the world.