Tomahawk, WI 12/11/2013 (BasicsMedia) – The Coca-Cola Company (NYSE:KO) opened its first plant in Shijiazhuang, China, its 43rd plant in the country. The company has earmarked an aggressive investment plan in China to the tune of $4 billion over a period of three years, i.e., 2012-2014, which shows company’s confidence and commitment to China. The latest plant is as per the plan envisaged; the company invested around $106 million to set up its first plant in Shijiazhuang.

Investment on Path to Achieve 2020 Vision

It is believed that Coca-Cola’s investment in China is strategically important for the company to achieve its 2020 vision. Management views that the new plant will have a positive impact and have a sustainable future in the country.

The Coca-Cola Company (NYSE:KO) will increase its focus on Hebei province, which has population of over 72 million and a per capita GDP of $5,259. It seems that a region with such a large population and higher per capita consumption, bodes well for the company to invest and foresee a strong future.

Three more lines to be installed

The Coca-Cola Company (NYSE:KO) initially started operation with its sparkling and beverage lines (Sprite, Coca-Cola, Minute Maid and Fanta), and stated that, three more lines will be installed over the next couple of years. Upon completion of the expansion plan, the said plant will be the biggest of all the Coca-Cola bottling plants in China.The huge capital investment will also generate high employment in the region.

Having presence in all five provinces of North China, the latest addition will strengthen Coca-Cola’s skill to deliver strong products portfolio,which will help the company meet the increasing needs of consumers in afast-growing beverage market like China.  The beverage market in the Hebeiregion has grown at a double-digit CAGR growth since 2008, and still has astrong potential for further growth.

Given the aggressive expansion plan in China, it is believed that The Coca-Cola Company (NYSE:KO) is well-poised to capture the growing demand in all the five provinces of North China and will lead to an increase in market share.

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