This article is from the Australian Property Journal archive
BEVERAGES giant Coca-Cola Amatil will close its Adelaide bottling plant after 75 years and sell the prized Thebarton property as a development site.
Managing director Alison Watkins said the decision to close the Adelaide plant is part of the company’s $90 million plan over three years to remodel its supply chain across Australia.
The review recommended increased production in Queensland and Western Australia and the closure of its South Australia operation in 2019. Watkins said approximately 180 employees and contractors were affected by the decision.
“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 Australian manufacturing facilities, principally at Thebarton, in 2019.
“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,” she added.
The closure of manufacturing facilities in South Australia will deliver a further $20 million in cost savings from 2020. There is also expected to be approximately $50 million of one-off costs associated with this program expected to be offset by surplus profit from the proposed sale and leaseback of the Richlands site and sale of the Thebarton site following its closure.
Last month Coca-Cola put its Richlands, Brisbane facility on the market with a price tag of $150 million. The 20-hectare 220-260 Orchard Road property has hit the market with sale and leaseback of 20 years.
Watkins said in addition to Richlands, other manufacturing activities would also shift to Kewdale in Western Australia, Moorabbin in Victoria, and Northmead in NSW.
Australian Property Journal
