Coca-Cola, one of the world's leading beverage suppliers, yesterday began operating a new manufacturing base in Huizhou, a city in South China's Guangdong Province.

The new plant is Coca-Cola's 35th manufacturing base on the Chinese mainland. It is also its fifth production base in the province.

Involving an initial investment of 175 million yuan (US$21.9 million) and covering an area of 77,610 square metres, the new plant has four internationally advanced production lines and is capable of producing 400,000 tons of carbonated beverages a year.

"The Huizhou base will supply products to markets in Huizhou, Shenzhen and other regions in the east of the province, which have a population of over 36 million," said Mike Fei, general manager of Swire Guangdong Coca-Cola (Huizhou) Ltd.

The new base is expected to help Coca-Cola better meet increasing demand in the province, help lower distribution costs and respond more quickly to customers' demands, he said.

Demand is growing so fast that the base will have to double the number of production lines in two or three years, he added.

The plant reflects the significance of the Guangdong market for Coca-Cola and demonstrates the rapid development of the business in the province, said Paul Etchells, president of Coca-Cola (China) Beverages Co Ltd.

"We will sell 120 million cases of beverage products in Guangdong this year, compared to 30 million cases in 1997," the president said.

He said Coca-Cola will invest substantially in China in the coming years, not only in new manufacturing facilities but also in such things as marketing and branding.

However, he did not disclose how much money the firm would spend.

"For the location of a new manufacturing facility, our principle is to be near the market."

The beverage giant has poured US$1.2 billion into China since 1979 and its production network covers over 20 provinces and cities nationwide.

Etchells said Coca-Cola will set up more manufacturing facilities in the western region of China, where the market is growing, as well as in developed regions like Guangdong where the market potential is massive.

Source: China Daily