Coca-Cola breaks ground on second plant in Hunan

Coca-Cola began construction on its 324-million-yuan ($50 million) plant in Changsha, Hunan province, on Aug 6, its second plant in the province.

Company representatives said the second plant will complement the capacity of the existing bottling plant, which was established in 2002.

The new plant is designed with nine production lines: four for water, four for sparkling beverages and one for juice.

The company is a partner with China National Cereals, Oils and Foodstufs Corp.

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.

By that time, the two plants are expected to provide beverages to nearly 100 million consumers in Hunan and Guizhou provinces.

"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," said Hu Henghua, the mayor of Changsha.

Henrique Braun, president of Coca-Cola Greater China and South Korea, said COFCO has always been the company's trusted and "rock-solid partner".

"China is one of the most important and fastest growing consumer markets in the world. ..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. Coca-Cola will contribute to the sustainable development and prosperity of local communities," Braun said.

The new plant will reportedly create more than 1,000 direct and indirect job opportunities and help contribute to the region's service, transportation and retail industries.

"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.

"We expect more collaborative opportunities between COFCO, Coca-Cola and the Hunan government moving forward," said Luan Xiuju, CEO of COFCO Coca-Cola.

According to its second-quarter financial report, the company achieved a robust 7 percent growth in China, with strong double-digit growth for the flagship brand Coca-Cola.

China is the third-largest of the 207 national markets served by Coca-Cola around the world.

Coca-Cola has established 43 bottling plants and employs more than 45,000 people in China.

zhuanti@chinadaily.com.cn

(China Daily 08/10/2015 page7)