BEIJING: Coca-Cola kicks off its new plant construction in Changsha, Hunan Province, yesterday. The plant represents a US$50 million investment and is the second Coca-Cola factory in Hunan.
COCA-COLA officially kicked off its new plant construction in Changsha, Hunan Province, yesterday. The new plant represents a US$50 million investment and is the second Coca-Cola plant in the province.
Building a second plant is a strategic move that will fulfill the increasing demands of consumers and complement the capacity of the existing bottling plant established in 2002.
The new plant is designed to accommodate nine production lines, including four water production lines, four sparkling beverage production lines and one juice beverage production line.
The first phase of the new plant will be operational in September 2016 and is expected to deliver an annual production capacity of 160 million unit cases of beverages.
At that time, the two plants will simultaneously provide high-quality refreshing beverages to nearly one hundred million consumers in Hunan and Guizhou.
The groundbreaking ceremony was attended by Hu Henghua, mayor of Changsha, Henrique Braun, president of Coca-Cola China & South Korea, Luan Xiuju, chief executive officer of COFCO Coca-Cola Beverages, and Chen Hongbin, general manager of COFCO Coca-Cola Beverages (Hunan).
Hu congratulated Coca-Cola on the groundbreaking of the new plant.
“The establishment of the COFCO Coca-Cola Central China project in the Xiangjiang New Area showcases another milestone in the cooperation between Coca-Cola and the Hunan government, which has great significance in advancing the industrialization of Hunan,” he said
Braun noted that China is one of the most important and fastest growing consumer markets in the world and COFCO has always been Coca-Cola’s trusted and rock-solid partner.
“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,” he said.
Meanwhile, Coca-Cola will contribute to the sustainable development and prosperity of local communities.
The new plant will create more than 1,000 direct and indirect job opportunities and promote the development of the service, transportation and retail industries indirectly.
Luan noted that 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,” she said.
“We expect more collaborative opportunities between COFCO, Coca-Cola and the Hunan government moving forward.”
According to the second-quarter financial report, the Coca-Cola Co has achieved a robust 7 percent growth in the sparkling business in China, with a strong double-digit growth of the flagship brand Coca-Cola.
China has become the third-largest of the 207 national markets served by Coca-Cola around the world.
Since its re-entry into China in 1979, the system has invested more than US$9 billion in the country, with US$7 billion being invested in the past six years alone.
Coca-Cola has established a total of 43 bottling plants and employs more than 45,000 people in the country.
