Coca-Cola launches new production units in China

Coca-Cola is ramping up investments in China with the launch of two new production facilities in Shaanxi and Henan provinces, as well as the structural topping-out of its intelligent green manufacturing base in the Guangdong-Hong Kong-Macao Greater Bay Area.

The moves mark a major step forward in the company's efforts to localize production, enhance supply chain resilience and advance sustainable manufacturing in one of its most important global markets.

Over the past three years, the Coca-Cola China system — which includes its bottling partners COFCO and Swire Coca-Cola — has upgraded five production facilities through capacity expansion, digital transformation and smart manufacturing initiatives.

"China has always been a land of opportunity, which gives us the confidence to continue investing and deepening our roots," said Gilles Leclerc, president of The Coca-Cola Company's Greater China and Mongolia operating unit.

"By working closely with our bottling partners, we are strengthening our regional supply chain network and deepening our local value chain to better respond to market dynamics and build a more resilient future."

"We remain committed to our long-term presence here, bringing consumers high-quality products and growing together with China's beverage industry," Leclerc said.

The newly inaugurated plant in Xi'an, Shaanxi, features multiple digitalized production lines supported by an intelligent supply chain platform that integrates AI and data from procurement, energy, production and logistics systems.

The "industrial brain" enables end-to-end smart scheduling and faster adaptation to new product launches and seasonal demand shifts, said the company.

Meanwhile, the facility in Zhengzhou, Henan, was built to meet LEED Gold certification standards and incorporates more than 30 energy- and water-efficiency measures. These measures include intelligent cooling systems, photovoltaic power generation, and a smart hot water center that cuts steam consumption by more than 60 percent. The use of solar power and integrated thermal energy management marks a key step in the company's pursuit of low-carbon operations in China.

Both facilities are designed to serve as regional hubs.

The Xi'an plant, as the core of its operations in northwestern China, is planned to house seven beverage production lines and one syrup line, enabling multicategory production and significantly boosting supply capacity and service efficiency for Xi'an and the broader northwestern market.

The Henan site is expected to serve as a central production base capable of supplying over 1 million metric tons annually to nearly 100 million consumers.

These hubs will ensure stable supplies during peak consumption seasons and enhance distribution efficiency across the country, said the beverage giant.

Coca-Cola China has seen stronger performance from its brand drinks and its eating and drinking channel drove overall volume growth, according to its second-quarter earnings results released on July 22.

During the earnings call, James Quincey, chairman and CEO of The Coca-Cola Company, said that in China, despite a cautious consumer environment, stronger performance from trademark Coca-Cola and in the eating and drinking channel drove overall volume growth.

Currently, the Coca-Cola China system is developing more customer-specific execution strategies and driving tailored promotional campaigns, said the CEO.

wangzhuoqiong@chinadaily.com.cn