Coca-Cola has pledged to invest $4bn during the next three years in expanding its operation in China, underlining its position as a “key market” for the soft drinks giant.
The plans were revealed by Coca-Cola CEO Muhtar Kent at a ceremony to break ground on the company’s 45th production facility in the country. The $56m plant in Hebei province – east of Beijing – will be capable of producing up to 250m unit cases of still and sparkling beverages when it is completed. The first phase of construction is expected to be finished in 2017, at which time the plant will be operating on four production lines and will increase Coca-Cola’s annual production capacity in northern China by around 100m unit cases.
It is Coca-Cola’s second investment of $4bn in four years; in August 2011, it invested the same amount in improving its operations in China, taking the total amount that it had spent on the fast-growing market up to $7bn.
Of the latest round of investment, Coca-Cola CEO Muhtar Kent said: “China is our third largest market by volume and is critically important to the future growth of our business. We are committed to investing here and growing here for the long term. Apart from infrastructure and system capability building, the new investments will focus on enhancing consumer experiences through improved marketing and local activations with our loyal retail partners.”
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