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(Yicai Global) Oct. 11 -- Atlanta-headquartered the Coca-Cola Co.'s major bottling partner Swire Coca-Cola has revealed its largest single investment in China's mainland at a maximum of CNY900 million (USD139.5 million) to expand production.
Swire Coca-Cola plans to invest no less than CNY900 million to enlarge its plant in central China's Zhengzhou to meet market demand, Xinhua News Agency reported.
The 124,000-square meter factory will have a production capacity of up to 1 million tons of beverages per year, according to the report. The Utah-based firm has already broken ground on the project in Henan province.
From January to June, Swire Coca-Cola’s revenue in the Chinese mainland was CNY13.5 billion (USD2.1 billion), up 25 percent from a year earlier, according to the company. The existing plants can no longer meet the demand amid increasing beverage sales, it said.
The bottler and distributor expects to invest CNY5.5 billion (USD854.7 million) in mainland infrastructure over the next five years. Besides the Zhengzhou project, it will relocate and expand its two plants in Guangzhou and Shanghai, adding nearly 20 production lines. Moreover, the firm intends to pour money into new developments, involving product and packaging, as well as emission-reducing and water-saving projects.
Swire Coca-Cola, the beverage maker's fifth-largest bottling partner, is controlled by conglomerate Swire Group. The partner holds the Coca-Cola franchising rights in 12 Chinese provinces and cities, including Shanghai. The company has 18 mainland plants. Founded in 1996, the Zhengzhou factory has produced and sold more than 1.9 billion twenty-foot equivalent units over the past 25 years.
The Coca-Cola Co. has another major bottling partner in China. COFCO Coca-Cola, which is jointly run by the American firm and China's state-owned COFCO Group, covers 19 provinces and cities, including Beijing.
Editor: Emmi Laine, Xiao Yi