By EUGENE MAHALINGAM
eugenicz@thestar.com.my

The Coca-Cola Co is setting up a 123,024 sq m bottling plant at Bandar Enstek’s techpark in Nilai due to attractive logistics costs and a “tight timeline.”

In an e-mail to StarBiz yesterday, Coca-Cola Pacific Group communications director Kenth Kaerhoeg said: “Our selection of location was mainly driven by a list of criteria, including transportation/logistics costs for raw materials and finished products and ready to develop freehold land with a tight timeline to have the plant operating by end-2011.”

He said that after conducting comprehensive studies of alternative locations, the beverage giant reached a “very strong conclusion” on having the plant located close to Kuala Lumpur and Port Klang. “Also we have good water and electricity source and suitable environment.”

Coca-Cola had a ground-breaking ceremony, graced by Prime Minister Datuk Seri Najib Razak, at the site yesterday to officiate the construction of the plant.


From left: Coca-Cola Bottlers Malaysia Sdn Bhd general manager Vamsi Mohan briefing Glenn Jordan, Datuk Seri Najib Razak and Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan on the company’s new bottling plant in Bandar Enstek, Nilai.

It hopes to have the plant operational before the transition agreement with Fraser & Neave Holdings Bhd (F&N) expires in September 2011.

“With the ground-breaking today (yesterday), the construction will commence straight away in order to have the plant operational in time for 2011 when we take over from our current bottler, F&N,” said Kaerhoeg.

He said the Malaysian beverage market had great growth potential for Coca-Cola. “More than 60% of the population is under 30 years old and this is an important indicator for a beverage market that is still underdeveloped.”

Kaerhoeg declined to reveal what was the company’s share in the local beverage market. “We do not disclose market share for individual markets,” he said.

At the event yesterday, Coca-Cola Pacific Group president Glenn Jordan said the beverage company would be investing more than RM1bil in Malaysia over the next five years to boost its presence in South-East Asia. “Our planned investment includes a new greenfield plant and its associated equipment, sales and merchandising assets, production innovation, in-market activations, sales infrastructure and marketing.”

The plant was expected to create 600 to 800 new jobs, he said, adding that more than 90% of raw materials would be sourced locally.

“Economic impact studies from our other markets indicate that each job in the Coca-Cola system creates 10 additional jobs at the supplier, distributor and trade levels. As a result, we expect to create 6,000 to 8,000 jobs overall.”

NSIC had participated in the National Investment Dialogue and Seminar that organized by MIDA & SME Corp on 23 Feb 2010 at Berjaya Timesquare Hotel, Kuala Lumpur. The objectives of the seminar are to provide the latest updates on the government policies, incentives and facilities for Malaysia and also to highlight & promote the investment opportunities available in services sectors. During the seminar, NSIC had opened booth to disseminate the state investment brochures and also to update the potential investors on investment opportunities in Negeri Sembilan.

Pertanian Pertiwi Sdn Bhd, one of the halal manufacturers for processed chicken (Ayam 5 Star) in Negeri Sembilan currently is expanding their project. The Seremban Municipal Council (MPS) has already approved the building plan and currently the project construction has started. The plot size for future development is approximately 4 acres and located next to the existing factory building at Senawang Industrial Estate. The company will invested RM 60 – 70 million for the expansion project and also will created 200 jobs employment when schedule to be completed by April 2010.

NSIC had participated in the 2nd National PV Conference 2009 (NPVC) which was held on 17 Nov 2009 at Marriot Hotel, Putrajaya. The event comprises of a conference on PV industry development which present companies like Sunpower, First Solar and Q-Cell, and exhibition on PV products and technology. The NPVC is an excellent event which promotes networking among local and international PV companies. Therefore, it’s a good platform for NSIC to participate the event to represents the State Government of Negeri Sembilan in attracting both foreign & local investors in PV industry.


YB. Minister of Energy, Green Technology & Water, Dato Seri Peter Chin Fah Kui visits NSIC’s booth during the event.

  

Booth NSIC