Coca-Cola has invested 324m CNY ($50m) in a second plant in Hunan, adding to its existing production capacity in the Chinese province.
The site in Changsha – 180 miles southwest of Wuhan – will house four production lines for water, four lines for sparkling drinks and one line for juice. The first phase of the project, which began construction this week, is expected to be operational by September next year and could deliver 160m cases of beverages every year.
The facility will add to Coca-Cola’s existing capacity in Hunan, where it built a bottling plant back in 2002. Between the two sites, the American soft drinks giant is expected to produce beverages for almost 100m consumers in both Hunan and neighbouring Guizhou.
The investment is a result of Coca-Cola’s partnership with its bottler in the region, China National Cereals, Oils and Foodstuffs Corp (COFCO).
Coca-Cola Greater China and South Korea president Henrique Braun said: “China is one of the most important and fastest growing consumer markets in the world. In partnership with COFCO, the establishment of the new plant will further strengthen our presence in central China and help promote the market’s development. Coca-Cola will contribute to the sustainable development and prosperity of local communities.”
COFCO CEO Luan Xiuju added: “The new project is another significant step in investing in central China. The successful groundbreaking of the new facility is being made possible by the favorable investment environment in Changsha and the great support by all levels of the Hunan provincial government. We expect more collaborative opportunities between COFCO, Coca-Cola and the Hunan government moving forward.”
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