Coca-Cola to Shutter Plant in Australia, Cutting 180 Jobs

As part of a $90 million plan to restructure its supply chain in Australia, Coca-Cola Amatil (CCA) is planning to close its manufacturing facilities in South Australia in 2019, cutting about 180 employees and contractors, the company announced Wednesday.

“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,” said Alison Watkins, Coca-Cola Amatil Group managing director, in a statement.

Watkins said the company’s decision was not “taken lightly,” stating the move is “important for ensuring our position in the market into the future.”

With the closeure of CCA’s South Australian manufacturing operations, production will shift in the coming years to the company’s Western Australia and Queensland manufacturing sites. CCA plans to make a $90 million investment in its plant in Richlands, Queensland, including the addition of a new glass production line and new capacity for dairy and juice production, the company said. Other manufacturing will move to sites in Kewdale, Western Australia, Northmead, NSW and Moorabbin, Victoria.

“We need to modernize and invest in new capability across our supply chain to maintain competitiveness in the market,” said Watkins.

The closure of CCA’s South Australian facilities will result in $20 million in cost savings from 2020, according to the company.