Coca-Cola Amatil has announced that it will invest AUD 90 million ($69.1 million) over three years to remodel its supply chain across Australia.
The company aims to increase the utilisation of its existing plants and have a greater focus on technology and automation.
The investment will be used chiefly to install a new glass production line at the company’s plant in Richlands, Queensland, as well as growing the site’s capacity for dairy and juice. As part of the move, Coca-Cola Amatil will also close its manufacturing facilities in South Australia.
It expects the shake-up to realise savings of AUD 20 million ($15.4 million) a year from 2020.
Coca-Cola Amatil group managing director Alison Watkins said the announcement was an outcome of a detailed review of the company’s Australian supply chain network.
“We need to modernise and invest in new capability across our supply chain to maintain our competitiveness in the market.
“As an outcome of the review, we will make an AUD 90 million investment at Richlands in Queensland. This will include a new glass production line and new dairy and juice production capacity.
The review identified opportunities for improvements in Amatil’s supply chain, recommending increased production in Queensland and Western Australia.
The AUD 90 million was in addition to the AUD 75 million ($57.7 million) investment announced in October last year, bringing the total investment in their Queensland facilities to AUD 165 million ($126.9 million).
© FoodBev Media Ltd 2024