Swire Coca-Cola (SCCL) has reached an agreement with The Coca-Cola Company to purchase the entire equity interests in six of the subsidiaries of Coca-Cola Bottlers Manufacturing Holdings Limited (CCBMH), at Nanning, Hangzhou, Foshan, Wuhan, Dongguan, and Suzhou on the Chinese Mainland. The CCBMH subsidiaries prepare and package still beverages, including enhanced water, juice, tea, dairy drinks, and coffee, which are then distributed by Coca-Cola China's bottlers.
As a result of this deal, the better distribution of production facilities, the supply chain integration, and the local production management will help speed up our production scheduling and new product launching, and allow us to provide a wider range of still beverage products and packages for consumers. In the next 5 years, SCCL will continue to increase investments in China. The total amount of investments is expected to be over RMB 5.5 billion, which will be used for building 20 production lines. This deal will also lead to a better layout of production lines and investments in the future.
