Investment in new manufacturing facility comes as many of South East Asia’s branded coffee shop markets experience healthy outlet growth
Huhtamaki's modernised paper cup production facility will be better placed to serve Southeast Asia's growing branded coffee chain markets | Photo credit: Ann H via Pexels
Huhtamaki has announced the relocation of its Malaysian paper cup manufacturing base from Penang to Port Klang, Selangor State. In a press release, the Finnish packaging manufacturer said the €10m ($12.2m) investment was intended to better serve its customers and respond to future growth in Southeast Asia.
“By investing in a world-class facility in Malaysia we are creating a platform for future growth in Southeast Asia. The new site is strategically located, it is close to our key customers and has easy access to neighbouring countries. We will also use the relocation as an opportunity to modernise our equipment and increase automation to improve efficiency,” said Eric Le Lay, President, Fiber Foodservice EAO.
World Coffee Portal data shows East Asia’s
branded café market expanded by 3,630 outlets over the last 12 months to reach 74,535 stores, representing 5.1% growth. Huhtamaki’s new regional investment reflects branded café outlet growth in countries such as Cambodia, which saw 27.8% outlet growth in the last 12 months, the fastest in the region. Vietnam, Thailand, Malaysia, and Laos, also saw branded café outlet growth of 5.5%, 5.3%, 4.7%, and 2.7% respectively during the period.
According to Huhtamaki, the new site is expected to be fully operational by the end of the second quarter of 2021.