(Yicai Global) June 10 -- Swedish food packaging and processing giant Tetra Pak has begun construction of a CNY700 million (USD99 million) factory in Hohhot, set to be the firm’s largest capping plant worldwide.

The company expects to finish work on the factory in the Inner Mongolia Autonomous Region at the beginning of next year to meet rising consumer demand for high-end packaging, The Paper reported. The plant, for which construction began yesterday, will be Tetra Pak’s first in China making caps and will produce up 10 billion a year.

Capping provided Tetra Park’s China business with the most growth last year, local General Manager Zhu Yidong said, adding that opening the plant will guarantee the supply of its Dream Caps to corporate clients, who want better quality packaging to suit consumer demand.

The Dream Cap is a re-sealable cap intended for those drinking on the go. Tetra Pak debuted it alongside bacteria-free packaging in 2017, and China’s two biggest dairy producers Yili and Mengniu, both based in Inner Mongolia, use the caps.

Tetra Pak entered China in 1979 and has built several packaging plants in Hohhot, Beijing and Kunshan, Jiangsu province, with total country investment of about CNY4.5 billion (USD630 million) before now. The new factory will be adjacent to an existing facility in Hohhot.

Editor: James Boynton