Coca-Cola to invest $2b in China in 3 yrs

(Xinhua)
Updated: 2009-03-06 22:35

SHANGHAI -- Coca-Cola Co., the world's largest soft drinks maker, said Friday it will invest more than $2 billion over the next three years in China, as the company saw "the fastest growth" here across the world even amid the current global economic downturn.

"The investment will be used on new bottling plants and distribution infrastructure, and marketing," Muhtar Kent, Coca-Cola's chief executive officer, said on Friday at the inauguration of its Global Innovation and Technology Center in Shanghai.

He said "the company enjoyed the fastest growth of business in China, which, although the third largest market, is very important to Coca-Cola."

These new investments are in addition to the $2.4 billion that Coca-Cola has offered to pay to take over China Huiyuan Juice Group, the country's leading pure juice maker, said Kent.

"We remain committed to proceeding with the Huiyuan acquisition and are currently focusing on the regulatory process," Kent said, "We are working closely with the Ministry of Commerce on the matter".

Three major shareholders of Huiyuan, which hold approximately 66 percent of the Hong Kong-listed company's shares, are said to have accepted the offer. But the offer needs to be approved by the ministry according to the newly-issued Anti-Monopoly Law.

Coca-Cola has been awaiting ministry approval since the offer was announced last September.

"If it is approved, our investment will exponentially grow. Even if it's not, it would still mean that we are going to invest a tremendous amount," Kent said in an exclusive interview with Xinhua here on Friday.

According to Coca-Cola, it has invested $1.6 billion in the past 30 years in China. The country has been not only its third biggest business in the world, but also the fastest growing market.

The CEO said he will come back in three months to witness two new factories opened by Coca-Cola's partners. One in northwest Xinjiang Autonomous Region and the other in Jiangxi Province.

"There will be many more to open in the next few years as already planned, because we need more production," Kent said.

"The new investment of Coca-Cola shows that multinational firms have strong confidence on China's economy," said Chen Jing, head of the Minhang District of Shanghai municipality.