Nampak invests in new can line
The company produces bottles and cans for the beverage market and the first project will see it invest almost R1 billion ($US112m) in an additional furnace at its glass bottle business based at Roodekop, Germiston. This business already has two furnaces and a third furnace will improve overall manufacturing efficiencies and enable it to supply a broader range of bottles.
The second project is an investment of almost R600 million ($US67m) to add aluminium beverage can capacity and convert existing lines from tinplate to aluminium. A new high-speed line is being installed at its Springs plant. This will be commissioned in May 2013 and will be followed by the conversion of other existing lines. Sales have been secured through long-term supply contracts with major customers.
Nampak’s chairman, Tito Mboweni, said: “These two projects strengthen our position in the beverage can and glass packaging sectors in South Africa and show our commitment to growing the South African economy.”
During its annual general meeting the company also provided a trading update for the first quarter of the financial year that ended in December 2012. It noted that there had been mixed demand for packaged products during this period. Hot weather in most parts of South Africa during the festive season resulted in good demand for beverage packaging but demand for packaging for many other fast moving consumer goods was subdued and selling prices remained under pressure in a competitive environment.
Operations in the rest of Africa and the UK performed to expectations.
“Despite the challenging economic conditions in South Africa where we generate some 70% of our revenue we remain confident of a further improvement in performance in 2013,” adds Mboweni.