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Swire Pacific Limited

Press Release

12th September 1996


For immediate release

Swire Beverages Opens New Coca-Cola Plant in Zhengzhou

Swire Beverages and The Coca-Cola Company officially opened a new bottling plant in Zhengzhou, Henan today, bringing to seven the number of Swire Coca-Cola bottling facilities in operation in China.

The new company, Swire Coca-Cola Beverages Zhengzhou Limited, is a joint venture between Zhengzhou General Food Products Factory (24.4 per cent), Beijing Chong Yin Industrial and Trading Company (5.6 per cent), and BC Development Company Limited (70 per cent), which is jointly owned by Swire Beverages Ltd., China International Trust and Investment Corporation and The Coca-Cola Company.

With a registered capital of US$18 million, Swire Coca-Cola Beverages Zhengzhou's newly constructed plant is located on a 62,500-square-metre site in the Zhengzhou High & New Technology Industries Development Zone. Equipped with advanced equipment imported from Europe and the United States, the company manufactures and distributes Coca-Cola, Sprite, Fanta, Bonaqua Mineral Water, Hi-C and a local juice brand, Tian Yu Di.

Officiating at the opening ceremony, the Chairman of Swire Beverages and Executive Director of Swire Pacific Ltd., Jim Conybeare, said the Zhengzhou plant would form an important link in the growing chain of Coca-Cola bottling plants in China.

By the end of next year, Coca-Cola, with eventually 23 plants in China, will have access to 80 per cent of China's 1.2 billion population. "The new Zhengzhou plant," said Mr Conybeare, "will play a significant part in developing this potential to the full.

"This city is becoming a tremendous investment centre, and I am confident our bottling plant has arrived at the right time," he added.

The President of The Coca-Cola Company's Middle and Far East Group, Douglas N. Daft, said: "The opening of the Zhengzhou plant further solidifies the relationships we have created with the help of our Chinese partners. Its strategic location will help our business develop in Central China."

The Zhengzhou plant commenced production in July and currently employs a staff of 200. Its high speed bottling line fills 600 bottles per minute and the plant is capable of producing a range of different packages, including the 250ml returnable glass bottle and PET in 500ml and 1.25 litres, as well as in the fountain form supplied mainly to caterers. The plant is also installed with an advanced quality control system from the United States.

Coca-Cola was first sold in China in 1927. The company re-entered the market in 1979 following the announcement of China's open door policy.

Today, Coca-Cola is the leading international soft drink in China, and with the addition of Zhengzhou, The Coca-Cola Company now has a total of 17 bottling plants in operation in China.


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