Agribusiness & Food

Coca Cola to shut SA facility

Beverage producer Coca Cola Amatil has announced it will close its Thebarton facility in South Australia as part of cost saving and consolidation efforts.

CCA announced its 2016 full-year result on February 22.

The company reported a statutory net profit after tax of $257.3 million, and a statutory EBIT of $466.1 million.

It announced new initiatives to “remodel” its Australian beverages supply chain, with $90 million to be spent on its Richlands manufacturing facility in Queensland.

That remodel, however, also includes the closure of the South Australian plant.

“In October 2016 we announced a $75 million investment in consolidating our sites in Brisbane with a new warehouse facility at our existing Richlands plant,” managing director Alison Watkins said.

“This will be a new, expanded and automated facility, generating greater capacity, comparatively lower operating costs and reduced materials handling and truck movements.

“We have now identified additional consolidation opportunities across the Australian supply chain and will close our South Australian manufacturing facilities in 2019.

“This is not a decision that we take lightly, however we know we must modernise and invest in new capability.”

CCA believes the Thebarton closure will deliver a further $20 million in cost savings from 2020, beyond the additional $100 million in cost savings to be delivered in its Australian businesses over the next three years.

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