COCA-COLA and the Kerry Group has formed a joint venture, Kerry Beverages, to invest in bottling plants in China.
The first will be a US$26 million plant in the city of Shenyang to make Coca-Cola products and Chinese brand soft drinks.
According to Coca-Cola China, the local partner will be the Shenyang Bawangsi Beverage Factory.
''We hope to produce 3.4 million cases or 20,000 tonnes a year,'' said Coca-Cola China external affairs manager Brenda Lee Siu-kwan.
''Coca-Cola is the most popular international soft drink brand in China.'' The products will be distributed to the three northern provinces of Liaoning, Jilin and Heilongjiang.
The contract for the Shenyang project is expected to be finalised by the end of the year. Factory production will begin in early 1995.
Kerry Beverages is 87.5 per cent owned by the Kerry Group and 12.5 per cent by a Coke subsidiary.