Coca-Cola HBC is to spend up to US$120m on building a bottling plant in southern Russia.

The Coca-Cola Co. bottler plans to start construction on the facility, situated in the Rostov region of Russia, in the coming months. The plant will be CCHBC's 14th production facility in Russia.

A spokesman for CCHBC said the plant would focus on bottling Coca-Cola Co.'s core international brands.

CCHBC has also been mulling the idea of tapping into growing demand in Russia for traditional bread drink kvas. The spokesman declined to comment on whether the company had reached a decision on its plans.

Last year, CCHBC enjoyed double-digit sales growth in Russia across its carbonates and non-CSD brands.

During 2006, the company, which has operations in 28 countries across Europe and Africa, saw group sales rise 16% to EUR5.4bn (US$7.2bn) on the back of an 11% increase in volumes. Operating profit rose by 13% EUR569m.