South Australia loses as Coca-Cola Amatil remodels its supply chain

Coca-Cola Amatil intends to spend around $90 million over the next three years to remodel its supply chain.

The company wants to use technology and automation to make its existing plant more efficient. This will involve increasing production in Western Australia and Queensland but closing its manufacturing operations in South Australia.

The Richlands plant in Queensland is scheduled to receive a new glass production line and new dairy and juice production capacity. This $90 million investment will be in addition to the $75 million Richlands investment announced in 2016 which has been earmarked for a new, expanded and automated warehouse with greater capacity, comparatively lower operating costs and reduced materials handling and truck movements.

With the closure of operations in SA in 2019, some other manufacturing activities will also shift to Kewdale in Western Australia, Moorabbin in Victoria and Northmead in NSW.

The closure of manufacturing facilities in South Australia will deliver CCA $20 million in cost savings from 2020.

In announcing the planned closure of operations in SA, Coca-Cola Amatil Group Managing Director Alison Watkins said, “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.

“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 need to modernise and invest in new capability across our supply chain to maintain our competitiveness in the market.”

Approximately 180 employees and contractors will be affected in South Australia and Amatil aims to work with each one individually in order to provide financial counselling, personal support and assistance in finding new positions. Where feasible, some permanent staff will be redeployed to other positions within the company.

Existing sales, distribution, warehousing, equipment servicing and Statewide Recycling teams in the state are unaffected by the changes.