Coca-Cola bottler Arca Continental has unveiled plans to construct a new production and distribution facility in Houston, Texas, US.
Through its subsidiary Coca-Cola Southwest Beverages (CCSWB), Arca Continental will build the new US facility with an investment of $250m.
The new production and distribution facility will feature 1 million ft² of space, and is claimed to be the first Coca-Cola production plant to be developed in the US in last ten years.
Arca Continental board of directors chairman Manuel Barragan Morales said: “This significant investment confirms Arca Continental’s commitment for the sustainable value-creation in all the markets we serve and is a reflection of the confidence in our company’s ability to continue perfecting its performance, serving its customers with excellence and anticipating the needs of consumers.”
Expected to be operational in early 2020, the new facility will feature latest technology, five new production lines, in-line blow molding, as well as distribution facilities, warehouse and sales units.
Under $90m synergy program, the project is expected to contribute around $30m in cost savings and operating efficiencies.
Arca Continental CEO Francisco Garza Egloff said: “The productivity, efficiency and sustainability that this new plant will bring to beverage production in the U.S. Coca-Cola system, confirms our company’s determination to improve its competitiveness, enhance service at the point of sale and expand our portfolio for the communities we serve in Texas, Oklahoma, some parts of Arkansas and New Mexico, always in a profitable and sustainable way.”
Arca Continental is engaged in the production, distribution and marketing of Coca-Cola’s non-alcoholic beverages under the brands of Bokados in Mexico, Inalecsa in Ecuador, and Wise in the US.
Arca Continental is said to be the second largest Coca-Cola bottling in Latin America, which serves over 19 million in the northern and western parts of Mexico, as well as Ecuador, Peru, the northern region of Argentina and the Southwestern US.
CCSWB produces, markets and distributes Coca-Cola brands across Texas and parts of New Mexico, Oklahoma and Arkansas.