The €24 million investment, which will create around 60 jobs when it opens early in 2018, will be capable of producing more than 3 billion closures every year.
With demand for well-designed closures on beverage cartons rising all the time, the new facility will provide much-needed local production and essential extra capacity.
Michael Zacka, Cluster Vice President, Tetra Pak South Asia, East Asia and Oceania (SAEA&O), said: "The new production facility will ensure faster delivery for customers across the region, offering a broad range of exciting closures that meet consumer demand for functionality and convenience."
"It's another sign of the confidence we have in this region, and our commitment to putting our customers' success at the heart of everything we do. Together with the packaging material factory that we will open in Vietnam in 2019, our fourth in southern Asia alone, our ability to serve customers in this exciting part of the world is growing stronger all the time."
The new production facility will be located within the company's existing Straws and Strips Plant in Rayong.