S AFRICA: South African Breweries plans US$80m maltings plant
The investment is designed to cut down on barley imports
South African Breweries (SAB) has revealed plans to build a new ZAR700m (US$78.9m) maltings plant in its domestic market, allowing it to cut down on barley imports.
Work on the plant, which will be located in Guateng, south of Johannesburg, will start this year and is due to finish by 2015, the SABMiller subsidiary announced on Monday (25 February). It will produce around 130,000 tonnes of malted barley annually, the company said.
“The new maltings plant will have significant cost saving and growth benefits for SAB,” said MD Mauricio Leyva. “It will allow us to reduce our exposure to volatile international markets and replace a significant share of our imported malt and barley with local barley.”
SAB currently sources around 65% of its barley locally. Once the new maltings plant is operating, this should rise to between 90% and 95%, the company said.
Levya added: “We will also strive to ensure we maximise local industry involvement in the construction of the new plant in order to help develop the communities in which we operate.”
Last week, SABMiller's outgoing CEO Graham Mackay talked up the brewer's local approach in global markets at the Consumer Analyst Group of New York's annual conference in Florida.
View Larger Map
SABMiller has opened a second brewery in Uganda as it seeks to relieve capacity pressures in the country....
- What's so special about Islay anyway? - Comment
- Diageo gets 2016 off to a strong start - Analysis
- Six key trends for alcoholic drinks in 2016
- With MegaBrew sorted, is MegaBev next? - Research
- What do Bourbon and craft beer have in common?
- The US is "the first place I look" - Diageo CEO
- Bacardi ups ante in US Havana Club row
- Alcohol industry warning over Kroger plan
- SABMiller hits back in UK corporation tax row
- Suntory bids for Lucozade, Ribena Nigerian network
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research