Coca-Cola Amatil acquires San Miguel’s beverage bottling facility in Indonesia

12 December 2012 (Last Updated December 12th, 2012 18:30)

Coca-Cola Amatil (CCA) has acquired the non-alcoholic beverage bottling assets of PT San Miguel Indonesia Food and Beverages in Jakarta, Indonesia, for A$45m ($47m).

Coca-Cola Amatil (CCA) has acquired the non-alcoholic beverage bottling assets of PT San Miguel Indonesia Food and Beverages in Jakarta, Indonesia, for A$45m ($47m).

The latest move comes on the heels of San Miguel's decision to halt its non-alcoholic beverages production in the region.

According to the Australian Coca-Cola bottler, the assets include a 20,000m² beverage production facility, which comprises a PET bottling line as well as a 5,000m² warehouse.

The company also acquired a 100,000m² land parcel, which provides a land bank for future expansion.

CCA group managing director Terry Davis said the acquisition of the bottling facility is very important for the company as it hastens its expansion plans for the Jakarta region.

"In addition to the site's existing high-speed PET bottling line, we will install an additional carbonated soft drink PET line, increasing our Indonesian PET production capacity by 20% over the next 12 months," Davis said.

The acquisition will also provide a well located complement to CCA's Cibitung manufacturing operations.

The facility is said to have the capacity to add three more beverage production lines, which is expected to increase Indonesian PET capacity by a further 35%-40%.

This could provide an immediate low-cost expansion option to the business in the key densely populated West Java region of Indonesia.

CCA, which further plans to develop the beverage bottling capacity over the next one year, is currently completing the acquisition of an existing 18,000m² warehousing facility in Lae for A$28m ($30m).

"The acquisition of this warehousing facility is strategically important for our fast-growing PNG business as it adjoins our existing manufacturing and distribution operation," Davis added.