Coca-Cola reaffirms PHL investment amid Canlubang plant closure

(Updated 7:04 p.m.) Atlanta-based beverage manufacturer The Coca-Cola Company said it will not pull out its bottling plants and investments in the Philippines even as it confirmed the looming closure of its concentrate factory here.

“We reaffirm the commitment of The Coca-Cola Company to invest $1 billion in the Philippines during the period 2010 until 2015,” The Coca-Cola Export Corp., the Coca-Cola Company's Philippine arm, said in an e-mail Monday.

Despite repeated queries to different officials the whole day, GMA News Online was not able to clarify what percentage of the five-year, $1-billion pledge has already been funneled in by the Coca-Cola group and where the funds have been invested.

The statements came on the heels of a Philippine Star report saying that the beverage company is winding down operations at its concentrate plant in Canlubang, Laguna province this year.

“The Company has decided to produce all concentrate and beverage base for the Philippines in Singapore, and to close the Philippines concentrate plant,” the company confirmed, noting that the decision was made following a review of its supply chain.

The Coca-Cola Company has 22 other plants in the Philippines employing some 7,000 people.

But the Coca-Cola group did not clarify conflicting reports, which came after Philippine Star broke the news, on the number of employees it has here.

The Canlubang plant's closure will affect 57 direct employees, the company claimed.

The Coca-Cola Export Corp. noted that “the welfare of the company employees is a top priority.”

According to the beverage maker, the 57 associates who are directly employed at the soon-to-be shuttered plant will be reassigned to other plants or facilities in the Philippines or to The Coca-Cola Company's concentrate plant in Singapore; they will also be provided a competitive severance package.

“Additionally, Coca-Cola has taken the necessary steps to inform and coordinate with the Department of Labor and Employment and the other relevant government agencies to ensure our full compliance with the legal requirements for the plant’s closure,” it added.

In January, Mexico-based Coca-Cola FEMSA, S.A.B de C.V. completed its acquisition of Coca-Cola Export Corp.'s 51 percent stake in Coca-Cola Bottlers Philippines, Inc. (CCBPI), the Philippine supplier of Coke products, for $688.50 million.  

San Miguel Corporation holds a minority stake in CCBPI. Coca-Cola FEMSA has the option to acquire the remaining 49% of CCBPI at any time during the next seven years. — BM, GMA News