Coca-Cola Singapore Beverages (CCSB) will wind down manufacturing operations at its bottling plant in Tuas over the coming months, with full closure planned by February 2016. The company is said to move its bottling operations to Malaysia.
Approximately 200 job cuts will be made following the closure. According to Coca-Cola, workers will be offered comprehensive support services to help them transition into new positions and will receive competitive severance packages. CCSB, the Employment and Employability Institute (E2i) and the Food, Drinks and Allied Workers Union (FDAWU) will be working closely with these employees.
Meanwhile, CCSB will continue to employ approximately 450 people while retaining its current product portfolio. Its marketing divisions will not be affected by the job cuts. Coca-Cola will also continue to employ approximately 300 people across its other operations in Singapore.
“Coca-Cola is re-aligning its growth strategy in Singapore to focus on high-value added services,” Stephen Lusk, CEO of Coca-cola Singapore Beverages & Coca-cola Bottlers Malaysia, said.
It has committed to investing US$100 million in Singapore over the next five years to develop in services such as new technologies, innovation and research. This is in addition to the US$100 million Coca-Cola has invested in Singapore since 2010, Lusk added.
Coca-Cola’s decision came amidst Singapore’s economic restructuring. Meanwhile, the Singapore Economic Development Board (EDB) will continue to support Coca-Cola in its future direction and the deepening of its business interests here.
“We are confident that Singapore remains a strategic business location for Coca-Cola. This is demonstrated by their commitment to invest in high-value added activities here, such as expanding their state-of-the-art concentrate plant, which supplies beverage concentrate to key markets throughout Asia-Pacific.”
“Singapore’s consumer business industry has grown over the last five years, and is expected to create 2,400 jobs and S$2.1 billion of value added from 2014 to 2016. The government remains committed to working with companies in this industry, to continually invest in R&D, technology adoption and skills training.” Kevin Lai, executive director of consumer businesses, EDB, said.