Commerce Minister Tofail Ahmed welcomed the company in Bangladesh at a ceremony on Tuesday and offered full government support “if you face any problem”.
US Ambassador in Dhaka Marcia Bernicat said with the first-ever plant, the Atlanta-based soft-drink behemoth would start a “new chapter” in Bangladesh.
She said the success of the new plant would be a “clarion call” to other American companies to look closer at Bangladesh’s emerging middle class to sell and invest here.
The company’s President for the Asia Pacific Group, John Murphy, said they had invested $75 million for the greenfield plant at Bhaluka in Mymensingh. “We are strengthening our roots in Bangladesh,” he said.
Murphy hoped they would be able “to bring more prosperity to Bangladesh and to the people here”.
They were speaking at the 2Oth anniversary of the American Chamber of Commerce in Bangladesh, AmCham, and the Coca-Cola reception at the US embassy ahead of the formal inauguration of the plant by Finance Minister Abul Maal Abdul Muhith.
Coca-Cola, Sprite, Fanta, juice and juice-based drink, and packaged drinking water will be produced in the new plant. Currently, Abdul Monem Ltd and Pran Group bottle these products.Coca-Cola started business in Bangladesh with an agreement with Tabani Beverage, owned by a Pakistani national, in 1965.
After independence, Tabani was put under the Freedom Fighters’ Welfare Trust and it continued business up to 2008.
The US ambassador said the new plant would create jobs in Bangladesh and increase US exports to Bangladesh.
“Coke’s new investment in Bangladesh suggests confidence in this country’s growing consumer market,” Bernicat said, expecting that many other global brands follow suit.
“The expansion by Coke in Bangladesh is great news, as Coca-Cola is a model employer,” she said.
Bernicat, however, said there was “still much to be done to make Bangladesh a more competitive destination for goods, services and capital”.
She particularly highlighted the issue of bureaucratic regulations, governmental processes, and workers’ safety and rights issues.
She offered US expertise in making Bangladesh a competitive investment destination.
The US is the largest single-country destination for Bangladesh’s exports. The two-way trade grew to $7 billion in 2015 from $1.5 billion in 1996 when the AmCham was established.