Coca-Cola Amatil to close South Australian manufacturing operations
Coca-Cola Amatil said it will close its manufacturing facility in South Australia, cutting about 180 jobs.
The company plans to shift the work to Queensland as part of a A$90m ($70m) supply chain restructure.
The investment is part of the company’s review on Australian supply chain network, which has identified improvements and recommended increase in production at Queensland and Western Australia.
The $70m investment is in addition to the AU$75m ($58m) Richlands investment announced last year, which was intended to deliver an automated warehouse with higher capacity, lower operating costs and reduced material handling.
Coca-Cola Amatil managing director Alison Watkins said: “We need to modernise and invest in new capability across our supply chain to maintain our competitiveness in the market.
“As an outcome of the review, we will make a AU$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.
“This isn’t a decision we have taken lightly, but we know it will be important for ensuring our position in the market into the future.”
Apart from Richlands, other manufacturing activities would also shift to Kewdale in Western Australia, Moorabbin in Victoria and Northmead in New South Wales.
The company which is the sole manufacturer and distributor of Coca-Cola across Australian continent, stated that the decision to close the South Australian facility can directly affect about 180 employees and contractors.
It claims that it will work with individual employees being affected by the decision and shall support them through the phase.
The company estimates that the closure of the South Australian plant can help in saving an additional A$20m ($15m) in cost savings from 2020.
Image: Coca-Cola Amatil to invest $70m in Australia. Photo: Courtesy of The Coca-Cola Company.