Factory built will be the fourth in Palestine when operational in October; Coca-Cola New Zealand to open up its factory at The Landing Business Park near Auckland airport.
Coca-Cola (NYSE:KO) will set up a factory in Gaza by October this year, making this the fourth such factory to be built by the multinational beverage company in Palestine. The $20 million will jack up the number of employees from half a thousand to over 800 people. The idea of opening up a factory was initially planned in late 2014, but the location was not revealed at that time. It was also pending on securing permits for the necessary supplies to enter the strip.
The question of opening a factory in Gaza, where the Hamas-controlled group runs the government, sounds quite risky compared to the West Bank, where the Palestinian Authority is based. Imad Hindi says that a company has been a long-term investor in the region and is well known amongst the populace including the region’s leader over its contributions to the society – including the Hamas group.
Coca-Cola currently has factories in the area of Ramallah, Jericho, and Tulkarim, and has a less than 90% market share, which is by far the largest in the region. Plan details show that the expansion will occur in two phases. The first phase will be operational from later this year, which the company announced, followed by a second one in either late 2016 or early 2017, and will expand to produce juices as well as other non-carbonated sodas. Each will require an investment worth $10 million each.
Meanwhile, Coca Cola’s New Zealand division, Coca-Cola Amatil will open up a factory at The Landing Business Park located near Auckland International Airport. The warehouse will be 12000 square meters in length and will assist the beverage company in expanding its existing operations. It already possesses another warehouse in Oasis at Mt Wellington and manages to churn out a soft drink every minute.
Auckland International Airport will play its part in developing the land and the building, whereas Coca-Cola, will occupy the building on a long-term lease. The location serves as a perfect spot to meet the requirement of security, connectivity, and necessary civic amenities.
Mark Thomson, Auckland Airport’s general manager for the property, stated that they wanted to create a lucrative business environment to cater to a wide scope of users of the airport. Currently, the latest stage of ‘The Landing’ is currently undergoing development. The new commercial hub is expected to be 100 hectares, once completed.
Coca Cola's stock price ended the day at $40.41, a loss of 0.60% from the previous day.
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