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Coke opens 210m yuan plants in Xinjiang, Jiangxi

Coca-Cola and its bottling partner, Cofco Coca-Cola Beverage, said they have spent 210 million yuan (HK$238.12 million) on two plants that celebrated their official opening this week, part of a new wave of investment under Coke's US$2 billion pledge to the mainland market.

The US beverage giant's HK$19.65 billion takeover bid for juice maker China Huiyuan Juice Group was blocked by the government in March.

The two plants in Xinjiang and Jiangxi provinces, which began operation last year, bring the number of its bottling plants on the mainland to 38.

'This ... 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, Coca-Cola's president and chief executive.

The two plants had directly created 796 jobs and were expected to create a further 8,000 jobs with upstream suppliers and service providers, the company said.

Coca-Cola has two bottling partners on the mainland - Swire Group and Cofco Group, the country's largest food importer and exporter. It also has a subsidiary for the bottling business in the country.

Cofco Coca-Cola, a subsidiary of Hong Kong-listed China Foods, runs 10 bottlers.

Coca-Cola sells concentrates of Coke to Cofco Coca-Cola, a joint venture 35 per cent owned by the US company and 65 per cent by China Foods.

Coca-Cola is the largest soft-drink maker in the rapidly growing but competitive mainland market, according to Euromonitor International, a marketing research agency.

It pledged earlier this year to invest US$2 billion on the mainland over the next three years on plants and distribution infrastructure and boost research and development.

China is the third-largest market for Coca-Cola with business growing 19 per cent last year.

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