SAB to invest R5-billion in South Africa
January 2005
News
South African Breweries has confirmed that it will invest R5-billion in South Africa over the next five years, commencing in early 2005. Approximately half of this is in new expansion.
Managing director Tony van Kralingen said that the decision had been taken as a direct result of SAB's confidence in the South African economy and its future prospects. The company has invested some R4-billion in South Africa over the past decade, including the construction of the Ibhayi brewery.
"Our breweries are being run very efficiently and this plan is designed to cater for future growth, resulting in a total spend of some R1-billion a year for the next five years on both expansion and maintenance. This investment will create a number of opportunities for employees and suppliers of the company, and as importantly, will boost our company's impact on the South African economy."
BEE
While some specialised equipment will be sourced abroad because of proprietary supplier considerations, the company will be taking this opportunity to boost local suppliers and particularly, seek new Black Economic Empowerment opportunities in procurement.
"As a South African company, we are clearly committed to sourcing from local suppliers and as much as we can and targets will be set in due course. As far as local purchasing is concerned, our intention is to source all civil works, building expansions, brew house expansions, glazing, roofing, sheeting and pipework locally."
SAB spent over R700-million with 1500 BEE suppliers in the 2004 financial year, a 21% increase over the previous year. A similar percentage increase in BEE spend is envisaged for the 2005 financial year. The expansions will include additional brew houses, new packaging lines and new storage facilities. The development will be focused around Gauteng, with extensive work also being planned at the company's breweries in KwaZulu-Natal and the Western Cape. However, the investment in upgrading will affect the five provinces in which SAB has breweries (Western Cape, Eastern Cape, Gauteng, Limpopo and KwaZulu-Natal).
For more information contact Michael Farr, South African Breweries, 082 924 2267.
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