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Coca Cola opens new facilities to boost production
The Coca-Cola Company (TCCC) inaugurated on Tuesday two new production lines located at its Coca-Cola Amatil Indonesia plant in Cikedokan, Bekasi, West Java, to respond to challenges facing the soft drink market in Indonesia
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he Coca-Cola Company (TCCC) inaugurated on Tuesday two new production lines located at its Coca-Cola Amatil Indonesia plant in Cikedokan, Bekasi, West Java, to respond to challenges facing the soft drink market in Indonesia.
'We see Indonesia as a promising market and a growth driver for achieving our long term vision,' TCCC chairman and CEO Muhtar Kent said as quoted by Antara after the inauguration of the production facilities.
The development of the two factories is a part of an investment package worth US$500 million from TCCC for Coca-Cola Amatil Indonesia, with a share ownership compensation of 29.4 percent. The fund will also be used to accelerate the expansion of the company's storage and production system and for the procurement of cold beverage infrastructure.
'The $500 million investment has highlighted our trust in Indonesia, which will hopefully help us find opportunities to continue to grow in big countries while at the same time it will help us be more responsive to the needs of our consumers and business partners,' said Muhtar.
Over the last three years, Coca-Cola Amatil Indonesia created 18 new production lines, introduced 150,000 cold storage machines and developed large distribution centers to increase local capacities with hundreds of millions of dollars worth of investments.
'The two new production lines just inaugurated are good examples that portray how the $500 million investment will be allocated,' Coca-Cola Amatil Group chairman David Gonski said.
TCCC predicts that the retail value of products from the non-alcohol ready-to-serve beverage category will increase to $300 billion by 2020 and Indonesia will become a market segment with the fastest growth level, as it has a continuously growing middle class.
TCCC has operated in Indonesia for more than 88 years. It has marketed 16 brands and is operating 10 bottling factories. The company is also employing 12,000 workers in Indonesia and has 200 distribution centers in regions across Indonesia. (dyl/ebf)(++++)
