The Swiss beverage producer, Feldschlösschen, is to produce Coca-Cola for the Swiss market, under a new agreement with the American soft drinks giant.

The deal means Feldschlösschen will take over a large part of Coca-Cola's production, destined for Switzerland.

From January several million litres of the famous soft drink will be produced at Feldschlösschen's Eglisau plant.

Around SFr7.3 million will be invested in the plant, which will increase its capacity to more than 150 million bottles a year. It currently makes 100 million.

Feldschlösschen's management says it does not expect the deal to create more jobs. About 140 people work at Eglisau.

The new deal means the end of the Swiss company's partnership with Pepsi.

Feldschlösschen is in the process of selling off its beverages division but the company said this would have no bearing on the agreement with Coca-Cola.

swissinfo with agencies

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