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    Swire Coca-Cola unveils $140m expansion of Zhengzhou factory

    By Liu Zhihua | chinadaily.com.cn | Updated: 2021-10-12 15:44
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    Employees work on the production line of a Coca-Cola venture in Shanghai. [Photo by Yang Yanjun/China News Service]

    Swire Coca-Cola, the fifth largest bottling partner of Coca-Cola by global volume, recently announced the launch of an expansion and reconstruction project for its Zhengzhou factory in Henan province, with a total investment of no less than 900 million yuan ($140 million), which is the largest single investment by Swire Coca-Cola in China so far.

    The new factory will have advanced production technology and craftsmanship, and the annual production capacity will reach 1 million metric tons.

    With a partnership with Coca-Cola spanning more than 50 years, Swire Coca-Cola has a franchise right to 26 bottling factories.

    Thanks to the rapid development of the Chinese economy, the Chinese mainland has become the most important powerhouse for the sustained growth of Swire Coca-Cola.

    Swire Coca-Cola values China's vibrant and fast-growing market, and the policy support, development facilitation and strong domestic demand all have attracted Swire Coca-Cola to focus its strategy on China, said Su Wei, president of Swire Coca-Cola Co Ltd. Su also said the new investment in the expansion and reconstruction project of Swire Coca-Cola Zhengzhou plant is a manifestation of Swire Coca-Cola's determination to continue to increase its investment in China.

    The company will continue to increase investment in China in the next five years. Following the Zhengzhou project, the company plans to relocate and expand two plants, which are respectively based in Guangzhou, Guangdong province and Shanghai at present, to add about 20 production lines. It will also invest in sustainable development projects in new products, new packaging, and carbon reduction and water preservation.

    The company will invest more than 5.5 billion yuan in factory infrastructure, including the Zhengzhou project, in the next five years.

    The continuous expansion of domestic demand in China has also driven up Swire Coca-Cola's performance. In the first half of 2021, its revenue in the Chinese mainland reached $13.47 billion, increasing 25 percent year-on-year. The Chinese mainland market has generated nearly 70 percent of the company's global profits.

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