The Coca Cola Company has decided to invest US$ 4 billion into operations in China over the next three years. The announcement was made by chief executive officer and chair Muhtar Kent at the new plant sire in north China’s Hebei province.
The latest round of investments by the beverage giant comes after a US$ 9 billion investment into the country from 1979 to 2014.
Muhtar Kent told media persons that in terms of volume, China forms the third biggest market for Coca Cola and this investment is absolutely crucial for the growth and future of the business.
Kent said that once completed, the US$ 56 million new Huabei plant will have nine production lines and manufacture a total of 250 million cases every year. The Huabei plant is located in Hebei province’s Xianghe county.
By the end of 2017, the 50,000 square meter new Coca Cola facility will feature four production lines and add another 100 million unit cases to China’s yearly production.
After the ground breaking ceremony at the new plant in central China just two days ago, the plant in Huabei is Coca Cola’s second plant to be constructed as part of the latest investment plan.
Muhtar Kent said that the company is dedicated to investing and developing in China. Over and above their investment in infrastructure and system development, the latest set of investments into China will be targeted on improving customer experience via marketing as well as projects with the company’s loyal retail collaborators.
Moreover, the local bottling allies of Coca Cola - Coca Cola Bottling Investments Group China, Swire Beverages, as well as COFCO Coca Cola Beverages – will also be investing in local growth drivers and infrastructure. The major growth driver for this region is new investments in distribution, production, as well as marketing.
Sales volume of Coca Cola has continued to rise in China.