By Caijing reporter Zhao Hejuan 

(Caijing.com.cn) The Coca-Cola Co. said it plans to invest US$2 billion in China over the next three years, more than the total it has invested in the country over the past three decades, in what appears to be a sign of confidence in the Chinese market despite the economic downturn.

The US$2 billion will go to opening new plants and strengthening distribution and marketing, according to Muhtar Kent, Coke’s chief executive officer, speaking in Shanghai on March 6.

The investment plan includes a US$90 million technology center that opened in Shanghai on March 6.

The center will host research and development operations, and the company is recruiting more than 100 food scientists and marketing staff to be based there, said Li Xiaojun, vice president of Coca-Cola China. 

“Average annual per-capita consumption of Coke in China is still low compared to the US and Mexico,” Li said, referring to the two Coca-Cola markets that are currently larger than China. However, as sales are declining in other market, the company’s business in China continues to grow. In 2008, Coca-Cola’s business in China increased 19 percent year on year.

The sum of the investment does not include the US$2.4 billion acquisition of China’s biggest juice manufacturer, Huiyuan Juice Group, announced in last September and still pending government approval.  

Kent said the company is currently providing additional information to the Ministry of Commerce as it reviews the takeover. 

Full Article in Chinese: http://www.caijing.com.cn/2009-03-06/110114559.html