Tetra Pak to cut 300 jobs, close Jurong factory in consolidation move

Source: Gutzy Asia
Author: Kim

SINGAPORE: Tetra Pak has revealed plans to terminate approximately 300 employees and shutter its Jurong factory as part of plans to consolidate production into its other facilities in the region.

The transition is slated to unfold over the course of the next 12 months, as disclosed in a press release issued on Tuesday (27 Feb).

The multinational food processing and packaging solutions giant said that the move is "part of the company's continuous strategy to optimize its global manufacturing footprint, serve customers better and adapt to the changing market dynamic."

It assured that affected employees were promptly notified of the decision and have been engaged in ongoing discussions throughout the week to explore "new opportunities" or receive "outplacement support."

"Tetra Pak is committed to supporting all impacted employees by delivering above and beyond all applicable statutory requirements and ensuring they are treated with the utmost respect and care, in line with company values."

Responding to inquiries from Channel NewsAsia (CNA), Tetra Pak clarified that the operational adjustments primarily affect manufacturing roles.

Anticipating the impact on its workforce, Tetra Pak initiated consultations with the Food, Drinks and Allied Workers Union (FDAWU) prior to the announcement.

The company has also partnered with NTUC's e2i (Employment and Employability Institute), along with support from Workforce Singapore (WSG) and NTUC LearningHub (NTUC LHUB), to organize a job fair aimed at facilitating career transitions and providing onsite training opportunities for affected employees seeking alternative employment.

Furthermore, Tetra Pak expressed willingness to consider internal job applications from affected employees, both locally and regionally, to mitigate the impact of retrenchment.

FDAWU highlighted the positive and longstanding working relationship between the union and Tetra Pak, which has been in place since 1993.

They emphasized that through their collaborative discussions, they "were able to align on better retrenchment support packages for affected workers."

Established in 1982, Tetra Pak's Packaging Materials factory in Jurong has been a pivotal hub for supplying customers in Singapore and serving as an export nexus.

Over the years, it has evolved into one of the company's largest packaging materials facilities globally.

However, evolving market dynamics necessitated a reassessment of operational strategies to sustain competitiveness.

Acknowledging the imperative to adapt to changing market demands while optimizing its industrial footprint and operational costs, Tetra Pak underscored the significance of striking a delicate balance in navigating these challenges.

Simultaneously, Tetra Pak disclosed plans to relocate its corporate office to a new site in Singapore by year-end.

The upcoming facility, envisioned as one of its largest in the Asia Pacific region, is expected to accommodate up to 250 personnel. This move is said to underscore its commitment to maintaining a robust business presence in Singapore, encompassing core operational functions such as business management, project centers, IT, human resources, finance, and marketing.

According to Tetra Pak's website, the company boasts a global workforce exceeding 24,000 employees, with a regional footprint spanning Malaysia, Thailand, Vietnam, and Indonesia.