Proposed $23.1m manufacturing investment and consolidation
May 29, 2014 6:00 pm
Coca-Cola Amatil New Zealand (CCANZ) has announced a proposal to restructure operations across four existing manufacturing locations for juice, sports and lifestyle brands into one advanced, high-tech production facility within a proposed 18-24 month commissioning time frame. The company is now working through a consultation process with staff likely to be affected and no decisions will be made until the conclusion of that period which is approximately 30th June. CCA Board has earmarked over $23M for the planned hotfill upgrade: a significant investment proposal which would deliver future growth, greater in-house local production, better manufacturing control, increased line speeds and efficiencies, and expanded capacity for the local business. CCANZ Managing Director Barry O’Connell says that the proposal announcement comes after an extensive review of the current manufacturing operations. CCANZ is building on its previous manufacturing investments in the business, which included an $80M automated distribution centre in 2008 and a $50M expansion to blowfill capability in 2012 across both Auckland and Christchurch plants. “This latest proposal reflects confidence in our business performance from the CCA Group and Board. We plan to build a strong platform for brand innovation, future expansion into new packaging formats and product categories. This proposal presents the opportunity for a purpose built Auckland based hotfill manufacturing facility that we estimate will use 30% less energy and require 30% fewer truck movements which is better for the environment,” he says. Currently CCANZ operates juice manufacturing sites in East Tamaki (Auckland) and Hornby (Christchurch), with their incumbent majority contract packer also situated in Auckland (Hansells). All company employees potentially affected are being consulted and asked for their feedback on the proposal. The company says it will be in a position to confirm final outcomes after the consultation process. If the proposal proceeds it is estimated that 61 current permanent roles will be affected with approximately 35 new roles offered at the proposed facility. CCANZ’s other three manufacturing sites in New Zealand (Mt Wellington Auckland, Putaruru, Woolston Christchurch) are not affected. “We understand that any proposed changes can be an uncertain time for our team and we are consulting closely with those involved. We have a long history as a valued employer[1] and we will act with sensitivity and transparency throughout this process,” says O’Connell. [1] CCANZ was awarded second place for Most Attractive Employer at the annual Randstad Awards, 3 April 2014 MEDIA ENQUIRIES Suzy Clarkson Corporate Affairs Manager 09 970 8443 or 021 767 789 suzy.clarkson@ccamatil.com