PET keg supplier Petainer has announced a complete overhaul of its operational footprint in Asia with the company ceasing all manufacturing and warehousing activities in the region, consolidating its supply chain for the Asian market through its expanded production capabilities in the United States.
The decision involves the closure of Petainer’s blow moulding facility outside Beijing, China, with production slated to cease on May 10th.
In a press release Petainer explained the move was a direct response to the challenging economic headwinds currently impacting the Chinese premium beer market. Sources at the manufacturer indicated that the lingering negative economic consequences of the Covid-19 pandemic have triggered a significant downturn in demand for premium beer, a key segment where Petainer’s Hybrid Keg has traditionally held a strong market share.
Production in China began in 2017 at the then new Great Leap Brewing Company facility and moved to Petainer’s own manufacturing plant post-pandemic.
It is also understood competition from other domestically produced alternatives hastened the move to exit China.
This strategic realignment will also include the closure of Petainer’s warehouse facility in Thailand at the end of April. This warehouse was established following the shutdown of Petainer’s previous production plant in Bangkok in January 2023. At that time, the China facility absorbed the manufacturing responsibilities for the Southeast Asian market, with the Bangkok site transitioning into a warehousing hub for the Thai market specifically. The upcoming closure signifies a complete exit from physical infrastructure in Southeast Asia.
Despite the cessation of operations within Asia, Petainer is keen to emphasize its ongoing commitment to serving the broader Asian market (excluding China) from its significantly enhanced production base in the United States. The company has undertaken a substantial investment program in Petainer USA throughout 2024, resulting in the installation of comprehensive injection molding and expanded blow molding capacity.
This strengthened US-based manufacturing capability, combined with an established logistics network operating from California, will enable Petainer to supply its existing customer base across the rest of Asia with “Made In USA” kegs.
Hugh Ross, CEO of Petainer, commented on this significant strategic shift, stating, “We are sorry to be leaving China and our great team which was in place there. However, the Operational strategy for Petainer Group is to focus on a smaller number of Manufacturing Centres which we can invest heavily into, to bring the benefits of world class manufacturing to our Customers. Although the China market is a casualty of this decision, the Rest of Asia market certainly is not. We are confident that our market across Rest of Asia will continue to enjoy first class quality and service from USA.”
This decisive move by Petainer underscores a growing trend within the manufacturing sector towards optimizing global supply chains and consolidating production in strategically advantageous locations. For breweries across Asia this development signals a continued supply of Petainer kegs, albeit with a fully centralized production and logistics model originating from the United States.
The industry around the region will be keenly observing the long-term impacts of this ongoing consolidation on lead times, costs, and overall service levels within the Asian brewing landscape.
