Coca-Cola Amatil to spend AUD375m on capital projects this fiscal

Coca-Cola Amatil to spend AUD375m on capital projects this fiscal

Coca-Cola Amatil will begin work on a AUD57m (US$61m) closures and preforms production plant in Australia this week.

Coca-Cola Amatil's MD, Terry Davis, will break ground on the site of the facility on Friday 10 June, the soft drinks group said today (7 June).

The plant, to be based at the group's Eastern Creek Distribution Centre west of Sydney, will produce 2.8bn preforms and closures annually once fully operational.

Last month, Davis said in a trading update: "2011 is expected to be a peak year for capital expenditure, with expectations of an overall spend of around AUD375m on capacity and capability improvements."

Coca-Cola Amatil said that it expects a 5% increase in earnings before interest and tax for its fiscal half-year, to the end of June. Cost savings have helped the group stave off higher input costs and a "softer consumer spending environment", it said.