Arca Continental, Monterrey, Mexico, one of the largest Coca-Cola bottlers, announced that it will build a new production and distribution facility in Houston, Texas, through its subsidiary Coca-Cola Southwest Beverages (CCSWB), the company said.
The Monterrey plant became the first Latin American bottler to operate in the U.S. Coca-Cola system. It announced that it will invest $250 million in a facility that is nearly 1 million square-feet in size, the company says, making it the first Coca-Cola production plant built in the U.S. in over a decade.
“This significant investment confirms Acra 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,” said Manuel L. Barragan Morales, chairman of the board of directors of Acra Continental, in a statement.
The new Houston-based plant, scheduled to begin operating in early 2020, will have the latest technology, five new production lines, in-line blow molding, as well as distribution facilities, warehouse and sales, which will enable CCSWB to efficiently serve the Southwest Texas market, the company says. This project will contribute close to $30 million in cost savings and operating efficiencies, as part of the $90 million synergy program, it adds.
Chief executive officer of Arca Continental, Fransico Garza Egloff, added: “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.”
Mark Schortman, chief executive officer of CCSWB, highlighted Coca-Cola’s 100 years of tradition in Texas. During that time, the local bottler has maintained a close proximity to its communities and a strong commitment to the economic, social and environmental development of one of the most dynamic regions in the U.S., he says.
During the construction of the new facility, CCSWB will continue to offer the highest-quality products and the best customer service, Shortman says.