Tetra Pak will terminate its Jurong manufacturing and lay off 300 workers as part of a consolidation drive
Tetra Pak has announced plans to relocate its corporate office to a new facility in Singapore, positioning it as one of the company’s largest offices in the Asia Pacific region. The new office is designed to accommodate up to 250 people, reflecting Tetra Pak’s commitment to expanding its presence and operations in the dynamic Asia Pacific market. This strategic move underscores Tetra Pak’s dedication to fostering growth and innovation in the region from its new, sizable corporate hub.
In Singapore, Tetra Pak is set to retrench approximately 300 employees as the company proceeds with the closure of its Jurong factory. This decision is part of Tetra Pak’s broader strategy to consolidate production operations into its other facilities within the region. The workforce reduction is anticipated to occur over the next 12 months, as outlined in a press release issued by Tetra Pak on Tuesday, February 27.
On the same day, Tetra Pak, the food processing and packaging solutions company, informed its employees about the closure of its Jurong factory, leading to the retrenchment of around 300 workers. The company has initiated discussions throughout the week to explore new opportunities for affected employees or provide outplacement support.
Tetra Pak is dedicated to supporting impacted employees beyond statutory requirements, ensuring they are treated with respect and care in alignment with the company’s values. The changes primarily affect manufacturing roles, and the company acknowledges the difficulty of this situation for its employees.
“We understand and recognize that this is not easy for our employees. The company has weighed every option to create the best social package for them. Our priority was to ensure that every single employee would be well taken care of,” stated Tetra Pak.
The company plans to offer an enhanced social package to employees directly impacted by the changes, adhering to internal policies and statutory redundancy requirements. Further details and package terms according to roles and positions will be communicated individually between each employee and the human resources team.
OPERATING COST SUITABILITY
The Tetra Pak Packaging Materials factory in Jurong, operational since 1982 and one of Tetra Pak’s largest packaging materials facilities globally, is set to cease operations. Initially serving as an export base and supplying customers in Singapore, the factory’s closure is attributed to significant changes in market dynamics over the past decades. Tetra Pak acknowledges the necessity of adaptation for maintaining competitiveness while balancing market demands, industrial footprint optimization, and operational cost efficiency.
Ahead of the announcement, Tetra Pak consulted with the Food, Drinks and Allied Workers Union (FDAWU) and plans to collaborate with NTUC’s e2i (Employment and Employability Institute), supported by Workforce Singapore (WSG) and NTUC LearningHub (NTUC LHUB), to organize a job fair. This fair aims to facilitate career conversion opportunities with different companies and provide onsite training. Tetra Pak expresses its commitment to engage with employees interested in applying for other positions within Tetra Pak, either locally or in the region. Notable business partners listed on the Singapore website include Pokka, Yeo’s, Fonterra, Nestle, and F&N.
RETRENCHMENT ASSISTANCE
In a separate statement, the Food, Drinks and Allied Workers Union (FDAWU) announced that the affected workers at Tetra Pak will receive retrenchment support packages in accordance with unionized norms. Through discussions with the company, FDAWU has secured various “good practices,” both monetary and non-monetary, to benefit the impacted workers.
Tan Hock Soon, the union’s general secretary, highlighted the close working relationship with Tetra Pak, emphasizing the early notification of the consolidation exercise and the coordination for providing adequate support and facilitating job opportunities for retrenched workers.
“Through discussions between FDAWU and Tetra Pak, the parties were able to align on better retrenchment support packages for affected workers,” added Tan Hock Soon.
Simultaneously, as part of the consolidation exercise, Tetra Pak is slated to relocate its corporate office to a new site in Singapore by the end of this year. This move positions it as one of the company’s largest offices in the Asia Pacific region, accommodating up to 250 people.
Tetra Pak has affirmed its commitment to maintaining a robust business presence in Singapore to support its global growth. Core operational functions, including business management, project centers, IT, human resources, finance, and marketing functions, will continue to operate in Singapore.
As a global company, Tetra Pak boasts a workforce of over 24,000 employees worldwide. In the Asia Pacific region, it maintains a strong regional presence with offices or facilities in Malaysia, Thailand, Vietnam, and Indonesia, in addition to its operations in Singapore.
