Bluescope Steel's Tin Mill Closure - Coca-Cola Amatil

Media ReleaseSydney, 30 June 2006BLUESCOPE STEEL’S TIN MILL CLOSURECoca-Cola Amatil (CCA) said today that it did not expect the closure of BlueScope Steel’stin mill at Port Kembla to affect production of SPC Ardmona’s packaged fruit and vegetableproducts.However, the managing director of SPC Ardmona (SPCA), Mr Nigel Garrard, said thedecision to close the mill, the only producer of tin-plate in the country, was extremelydisappointing and a blow for the manufacturing industry in Australia.“At a time when manufacturing companies are downsizing or closing their operations inAustralia, SPCA and its parent CCA, are one of the few Australian manufacturing companieswhich are making substantial investments into Australian based manufacturing andinfrastructure to drive production and distribution growth into the future,” Mr Garrard said.CCA plans to spend $180 million on new warehouse and manufacturing facilities in Sydney’swestern suburbs. The planned infrastructure project consists of a new fully automated bulkdistribution and manufacturing centre at CCA’s bottling plant at Northmead, and a brandnew distribution centre at Eastern Creek.CCA has also committed to a three year $100 million capital program for the SPCA business.A new $15 million warehouse at SPCA operations in Shepparton is almost complete.Mr Garrard said that SPC Ardmona was already looking at sourcing imported tin-plate inconjunction with its major can supplier, Visy Industries, and he welcomed Bluescope’scommitment to work with its customers to ensure a smooth transition to utilising imported tinplate.Mr Garrard said he expected the price of imported tin-plate to be generally in line with thecurrent price of the tin-plate from BlueScope Steel.He said it was essential that Australia’s food producers remain competitive.“Thirty per cent of SPC Ardmona’s fruit and vegetable products are sold overseas, and weneed to stay competitive both here in Australia and in the global marketplace, particularly inthe face of increased pressure from low-cost producers from China and subsidised producerslike those in the European Union.”Mr Garrard said over the past five years SPCA had switched some of its packaging for fruitand vegetable products from cans into plastic in response to consumer preference for moreconvenient packaging.“At the moment we produce about 20 per cent of our products in plastic packs - the latest isthe 220 gram plastic cup of fruit with a disposable spoon which we are delivering to ourdomestic supermarket customers as well as into the CCA route trade (petrol andconvenience stores) for people who want a healthier product to eat on the run.“We will continue to deliver a mix of products in cans and plastic in line with the wishes of ourconsumers. People have been talking about the death of the tin can for 50 years, but itwon’t happen. Cans are robust, they have a long shelf life, and they maintain the integrity ofthe product.”Mr Garrard said SPC Ardmona has a proud history of manufacturing and marketingAustralian product, in Australia, for Australians. It remains the largest employer in theGoulburn Valley, one of Australia’s great ‘fruit bowls’.

Media Release“CCA and SPCA are proud of their Australian heritage. As an increasing number of foodmanufacturing doors in Australia close, they are continuing to make significant investments intheir Australian manufacturing production and distribution facilities,” he said.CONTACT:Sally Loane, Director of Media and Public Affairs, Coca-Cola Amatil(02) 9259 6532 or 0416 162 336Nigel Garrard, Managing Director, SPC Ardmona0418 819 328