Coca-Cola Amatil has plans to invest approximately A$90m ($69.4m) over the next three years to remodel its supply chain across Australia.

The company intends to make optimum use of its existing plant and lay greater focus on technology and automation.

Coca-Cola Amatil Group managing director Alison Watkins said this decision was taken after conducting a thorough review of the company’s Australian supply chain network.

The review identified scope for improvements in Amatil’s supply chain, recommended production increase in Queensland and Western Australia, and closure of its manufacturing operations in South Australia in 2019.

Watkins said: “We need to modernise and invest in new capability across our supply chain to maintain our competitiveness in the market.

“As an outcome of the review, we will make a A$90m ($69.4m) investment at Richlands in Queensland. This will include a new glass production line and new dairy and juice production capacity.

“The review found that further development of our facility at Thebarton in South Australia was constrained by its CBD location, site layout, dated infrastructure and expensive logistics. We will therefore be closing our South Australian manufacturing facilities, principally at Thebarton, in 2019.

“We need to modernise and invest in new capability across our supply chain to maintain our competitiveness in the market."

“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.”

The A$90m ($69.4m) investment is in addition to the A$75m ($57.8m) investment on Richlands plant announced last year for a new, expanded and automated warehouse with increased capacity and reduced operating costs.

In addition to Richlands, other manufacturing activities will also shift to Kewdale, Western Australia; Moorabbin, Victoria; and Northmead, New South Wales.

The decision to close the South Australian manufacturing facilities will approximately affect 180 employees and contractors.

The company anticipates that the closures will deliver a further A$20m ($15.4m) in cost savings from 2020.