Coca-Cola Amatil Indonesia has revealed plans to invest $63 million in the construction of a a distribution centre and new production line in Surabaya, Indonesia.
The plans were announced by Coca-Cola Amatil Indonesia CEO Kadir Gunduz, who said that he was confident that there were further opportunities for production and marketing within Indonesia – the bottler’s second largest market.
The investment will be accompanied by new technology, as Coca-Cola continues to commit to investing in the Indonesian market. It is expected that the distribution centre will begin operations in the fourth quarter of this year.
The Coca-Cola Company has already vowed to inject $500 million in expanding its presence in Indonesia, taking close to a 30% stake in Coca-Cola Amatil to help realise its objectives during the next two to three years.
Last April, Coca-Cola Amatil expanded its production plant in the outskirts of Jakarta as part of this $500m investment. At the time, FoodBev reported that the bottler had already commissioned 18 new production lines and built three new distribution centres since 2012.
Coca-Cola chairman and CEO Muhtar Kent said: “We consider Indonesia a dynamic and promising market and one of the growth engines to achieve our long-term vision… We believe by creating more jobs and where possible sourcing locally, we can promote the local economy and contribute to economic growth in Indonesia.”
And the Indonesian government’s industry minister, Saleh Husin, claimed that the latest investment from Coca-Cola Amatil would only be a good thing for the country’s growth prospects: “The beverage industry helps to advance the economy through production, investment and employment,” he said.
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