A US$22 million greenfield Coca-Cola bottling plant was officially opened in Ulaanbaatar, Mongolia, on August 24 by Muhtar Kent, president and CEO of The Coca-Cola Company and Odjargal Jambaljamts, chairman and CEO, MCS Group. This new plant will be the second and largest Coca-Cola plant in Mongolia. The first Coca-Cola plant was built in 2001 by MCS Coca-Cola, the exclusive bottler of Coca-Cola products in the market.
“I’m delighted to see MCS Coca-Cola continue to exceed all projections in sales volume and profit,” said Kent. “By posting an average annual volume growth of nearly 50 percent year on year, the Mongolian business has established itself as one of the strongest performing operations globally. I am also delighted to see that the leadership of MCS Coca-Cola has continuously demonstrated its commitment to invest in the development of its people and manufacturing facilities, critical to ensure continued future growth of the Coca-Cola business in Mongolia.”
The new bottling plant in Ulaanbaatar has a site area of 6 hectares. Two state-of-the-art bottling lines are installed – one for sparkling PET-bottle “Cold”/ ambient filling, and another line for still “hot” filling to cover the production of juice, tea and water products. A returnable glass bottling line will also be relocated from the existing plant. The new plant will implement cutting edge water treatment processes in line with the stringent quality assurance system of The Coca-Cola Company. Good manufacturing practice and sound environmental and regional safety requirements will also be enforced.
The Coca-Cola Company sees incredible value in developing its business in the Mongolian market and is confident that the new expansion will help the local business generate further growth.
The Coca-Cola system in Mongolia is also strongly committed to being a respected corporate citizen; an effort that is reflected by MCS Coca-Cola’s commitment to contributing to the Ulaanbaatar economy and population. With more than 3,500 employees, the bottling company is a leading employer and top taxpaying private company in the city. The MNTT25.35 billion (US$22 million) that the company invested into the new site also created an influx of funds to bolster the local economy. International research indicates that for each job created directly by the Coca-Cola system additional 10 local jobs are created with suppliers and business partners.
“With the burgeoning beverage market in Mongolia we have recorded remarkable growth rates. In 2002, we sold four Coca-Cola products to every average Mongolian consumer. In 2008, we are selling an average of 67 beverages to every Mongolian consumer. This has caused our first plant to run out of manufacturing capacity seven years ahead of schedule. We are greatly encouraged by the outstanding performance of our bottling operation as both the bottling company and The Coca-Cola Company have exceeded all projections of profitability and sales. Our investment in the new plant is just our first step to bring world-class manufacturing to Mongolia.”
