Coca-Cola opens new facilities in China
June 24, 2009
by FoodBusinessNews.net Staff
URUMQI, XINJIANG, CHINA — The Coca-Cola Co. and bottler COFCO Coca-Cola Beverages Ltd. have opened two new bottling facilities in central and western China.
The facilities are located in the Xinjiang and Jiangxi provinces in the cities of Urumqi and Nanchang. The move represents an investment of about $30.1 million, and it already has created 796 new jobs at the plants and is expected to create an additional 8,000 jobs with upstream suppliers and a variety of service providers.
"This ($30.1 million) investment in Jiangxi and Xinjiang represents the Coca-Cola system’s strong commitment to China and to consumers throughout China, including the less developed areas in central and western China in creating job opportunities and building a better community," said Muhtar Kent, chairman and chief executive officer. "Our business in China grew 19% in 2008, and China is now our third largest market. By opening new plants in Jiangxi and Xinjiang, we will be able to increase our geographic presence, enhance our competitive edge in China and support local community development by sponsoring jobs, local procurements and education."
Coca-Cola and its bottlers now have 38 bottling plants in China, and the company opened a research and development center in Shanghai in March.
"COFCO has historically had positive relations with the Jiangxi and Xinjiang governments and people," said Frank Ning, chairman of COFCO. "The currently favorable investment climate in Jiangxi and Xinjiang has encouraged us to work with Coca-Cola in building and opening new facilities here, which we expect to lead to more collaborative opportunities between COFCO and these local communities and governments moving forward."