Coca-Cola Amatil has unveiled plans to shut down its manufacturing operations in South Australia in 2019.

The firm is planning to invest around $90m in the coming three years to rebuild its supply chain across Australia through effectively using existing plant, as well as technology and automation.

According to the Coca-Cola Amatil Group managing director Alison Watkins, the decision was based on a detailed review of the firm’s supply chain network in Australia.

The decision could affect around 180 employees and contractors, while plans are underway to redeploy some permanent staff to other positions within the firm.

The review recommended to improve Amatil’s supply chain, including increased production in Queensland and Western Australia and closure of its manufacturing operations in South Australia in 2019.

Watkins said: “As an outcome of the review, we will make a $90m investment at Richlands in Queensland. This will include a new glass production line and new dairy and juice production capacity.

“The review found that further development of our facility at Thebarton in South Australia was constrained by its CBD location, site layout, dated infrastructure and expensive logistics.

“We will therefore be closing our South Australian manufacturing facilities, principally at Thebarton, in 2019.

The new investment is in addition to the $75m Richlands investment announced in the last year, which will deliver an expanded and automated warehouse with enhanced capacity.

In addition, the firm is planning to shift its other manufacturing operations to Kewdale in Western Australia, Moorabbin in Victoria, and Northmead in NSW

Coca-Cola Amatil partners with key suppliers to manufacture, package, sell and distribute its products such as ready-to-drink non-alcohol and alcohol beverages, coffee and ready-to-eat food snacks in the Asia Pacific region.

 

Source: beverageproducts.packaging-business-review.com

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