CCA has embarked on a $90 million supply chain restructure that will see it close its South Australian production and shift operations to Queensland and other states.
The $90 million investment at Richlands in Queensland will include a new glass packaging line and new dairy and juice production capabilities. The investment is in addition to the $75m Richlands investment announced by CCA last year.
Other manufacturing activities will also be shifted to Kewdale in Western Australia, Moorabbin in Victoria, and Northmead in NSW.
The announcement follows on from similar moves by Goodman Fielder and General Mills, which both also recently announced plans to consolidate their Australian processing operations in order to streamline their businesses.
The CCA plan follows a detailed review of its Australian supply chain network, according to CCA managing director Alison Watkins, and will affect 180 employees and contractors located in South Austraila.
"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 Australia manufacturing facilities, principally at Thebarton, in 2019," Watkins said.
CCA said the closure of the SA facilities will deliver a further $20 million in cost savings from 2020.
"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," Watkins said.
"I know today's announcement will be difficult for the team, many of whom have been part of Coca-Cola Amatil for many years. They are our priority as we work through this transition.”
Watkins said the company would provide financial counselling, personal support and assistance in finding new positions, and where feasible, some permanent staff will be redeployed to other positions in the company.
The news was released alongside the company's full-year results, which included a $257 million full-year net profit, down from $403 million last financial year, which took in a $171.8 million non-cash impairment charge against CCA's struggling SPC Ardmona business.
