Coca-Cola Amatil has announced it will close its manufacturing facilities in Adelaide by 2019.
In a statement to the ASX, CCA said the closure would deliver $20 million in cost savings from 2020.
The company also announced it will spend $90million over the next three years to streamline its supply chain.
The move comes as the company recorded a 37.4% drop in annual net profit to $246.1million, mainly due to a $171.8 million after tax writedown on its SPC fruit canning business.
Annual total revenue rose 1.3% to $5.25billion.
About 150 people are employed at the CCA facility in Adelaide, which the company took over in 1951. It currently produces the iconic Coca-Cola glass bottles.
Managing director Alison Watkins said: “A review found that further development of our factory at Thebarton in South Australia was constrained its CBD location, site layout, dated infrastructure and expensive logistics.
“Additional capacity will be developed at Richlands, with a further $90 million investment to install a new glass production line and new dairy and juice production capacity.
“This isn’t a decision we have taken lightly, but we know it will be important for ensuring our position in the market into the future. I want to take the opportunity to acknowledge our committed and hardworking manufacturing team in South Australia.”
The company said it would work individually with employees to “provide financial counselling, personal support and assistance in finding new positions”.
