Coca-Cola's new Yunnan plant signals commitment to sustainable growth

Updated: 2016-04-26 08:08

By Zhuan Ti(China Daily)

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Coca-Cola (Yunnan) Beverage Co Ltd began construction of a new eco-friendly plant in Kunming, Yunnan province, on April 21.

The new facility will replace a plant currently in operation in the provincial capital of Yunnan, tripling the number of bottling lines from four to 12, the company said.

According to the company, the new plant represents a $185 million investment and is part of the Coca-Cola system's current $4 billion investment plan, which began in 2015 and will continue through 2017. This builds on the $9 billion of investment made in China between 1979 and 2014, and underscores the Coca-Cola Co's strong confidence in the Chinese market and its business growth in the southwestern region.

Coca-Cola's new Yunnan plant is located in the Majinpu New Town Industrial Base in the Kunming National High-Tech Industries Development Zone and covers an area of 195,632 square meters.

Upon completion, the plant will deliver an annual capacity of 423 million unit cases of beverage, with both sparkling and still products, including such brands as Coca-Cola, Sprite, Fanta, Ice Dew and Ice Dew Chunyue, to fulfill the fast-increasing demand from 47 million consumers in Yunnan province, the company said.

Coca-Cola said construction work at its new Yunnan plant adheres to green building standards with regard to a wide range of considerations, including site selection, building environment, water-saving, energy-saving, air protection, material and resource utilization, indoor environment quality and design innovation.

The plant will strictly enforce the international certification system requirement of the Silver Certification of Leadership in Energy and Environmental Design, a green building certification program of the US Green Building Council that recognizes best-in-class building strategies and practices.

Upon completion, the plant will add to Coca-Cola's number of modern and environmentally friendly green plants.

Glen Walter, CEO of Coca-Cola Bottling Investments Group China, Marcelo Boffi, vice-president of Coca-Cola Greater China and South Korea, and Li Jianhui, general manager of Coca-Cola Yunnan Beverage Co Ltd, attended the new plant's groundbreaking ceremony along with local government officials.

"China is the third-largest market for Coca-Cola globally and is pivotal to Coca-Cola's global sales growth," said Bofi. "Since we announced a new $4 billion investment plan in China in 2015, we have been actively delivering on our promise. The 1.2 billion yuan ($185 million) new plant will help further strengthen Coca-Cola's market leadership in the southwest region."

As one of the largest and most influential foreign-invested enterprises in Yunnan province, the new plant project has received substantial recognition and won strong support from the local government and related authorities. It is hoped that the new investment project will not only foster economic growth in Kunming, but also promote the development and upgrading of the region's industry clusters.

"The new plant will become an important production base for Coca-Cola in China's southwest region," said Walter. "This investment will not only provide strong support to Coca-Cola's sustainable development in Yunnan, but also boost economic development locally by increasing job opportunities and enhancing collaboration."

While actively integrating itself into local economic growth, Coca-Cola (Yunnan) Beverage Co Ltd said it is also committed to corporate social responsibility and constantly invests in a variety of areas including community development, water resources and environmental protection.

Since 2000, the company has partnered with Yunnan Youth Development Foundation to build 11 Coca-Cola Project Hope schools in Yunnan, which have benefited around 3,500 students.

Through the Clean Water Project, Coca-Cola has also provided nearly 80 water purifiers in Yunnan's underprivileged areas, helping improve the quality of drinking water for about 40,000 residents.

At the groundbreaking ceremony, Walter, on behalf of all employees, donated 50,000 yuan to a Coca-Cola Project Hope school in Chuxiong, Yunnan province, with the aim of providing students with a better learning environment.

Upon completion of the new Yunnan plant, Coca-Cola has said that it will continue to invest in the sustainable development of the local community as it looks to contribute to Yunnan's future growth.

zhuanti@chinadaily.com.cn

 Coca-Cola's new Yunnan plant signals commitment to sustainable growth
Coca-Cola executives and local officials at the groundbreaking ceremony for the new Yunnan plant. Provided To China Daily

(China Daily 04/26/2016 page19)

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