Coca-Cola Southwest Beverages (CCSWB) will build a new production and distribution facility in Houston, the Dallas-based subsidiary of Arca Continental announced last week. The $250 million facility, which will begin operation in early 2020, will house five production lines and span more than 1 million square feet of manufacturing, warehouse, distribution and sales space.

“This significant investment confirms Arca Continental’s commitment for the sustainable value-creation in all the markets we serve and is a reflection of the confidence in our company’s ability to continue perfecting its performance, serving its customers with excellence and anticipating the needs of consumers,” said Manuel L. Barragan Morales, chairman of the board of directors, Arca Continental. 

The facility will be the first new Coca-Cola plant built in the U.S. in a decade. It will consolidate production from two CCSWB legacy plants and four distribution centers in Houston.

“Coca-Cola has a long, rich history in Houston,” said Mark Schortman, president, Coca-Cola Southwest Beverages. “As a local bottler, we’ve been serving customers, consumers and communities in Texas for more than 100 years. We are committed to supporting future growth in the region, one of the fastest-growing markets in the U.S.”

CCSWB produces, markets and distributes Coca-Cola brands throughout Texas and parts of New Mexico, Oklahoma and Arkansas. The company employs more than 8,900 associates who operate 10 production plants and 40 distribution facilities, serving more than 31 million consumers.

“The productivity, efficiency and sustainability that this new plant will bring to beverage production in the U.S. Coca-Cola system, confirms our company’s determination to improve its competitiveness, enhance service at the point of sale and expand our portfolio for the communities we serve in Texas, Oklahoma, some parts of Arkansas and New Mexico, always in a profitable and sustainable way,” added Francisco Garza Egloff, Chief Executive Officer of Arca Continental.