Business

SAB expands Angolan operations

13 July 2009

SABMiller is to build a US$125-million brewery and soft drinks plant in Angola, the brewing giant said on Friday.

"SABMiller has rapidly expanded its production assets, depots, sales force and route to market in Angola, as the country has maintained its strong economic growth record," the group said in a statement.

On completion of the new plant, SABMiller said it would have invested around $250-million in upgrading or building new facilities across Angola in the space of 18 months.

"Production of clear beer will begin at the new greenfield brewery in Luanda in northern Angola in October 2009.

"This $125-million facility will produce approximately 50 000 hectolitres of clear beer and employ 500 people from the surrounding area," SABMiller said.

This would take the total number of people employed by the brewing giant and its joint venture partner, Empresa Cervejas de N'gola, to over 2 000 across their five brewery and bottling facilities in Angola.

The new soft drink plant would see production beginning on three bottling lines, capable of producing 200 000 hectolitres per year.

"SABMiller remains positive about the potential of the Angolan market and, in conjunction with our partners, we are continuing to invest in what will be a bright future for the business," said SABMiller Africa MD Mark Bowman.

"Angola's economy has held up well during the global economic crisis and our team on the ground has risen to the challenges posed by supply chain and infrastructural constraints," Bowman added.

Last year saw additional capacity added to SABMiller's existing operations, with a new soft drinks line opened at its Catumbela facility in June, and work on expanding the capacity of the Lubango brewhouse to 820 000 hectolitres completed in November.

"SABMiller has shown a strong commitment to staff training in the country, and will have spent $2.5-million on ensuring employees at the new plant will meet the required proficiency levels upon opening," the company stated.

It had also to date trained nearly 200 graduates on its apprentice scheme.

SABMiller's first investment into Angola came in 1997, prior to the end of the civil war in 2002.

It started managing Empresa de Cervejas Ngola in Lubango under a management contract with government in 1997, and rehabilitated the brewery during that year.

It started managing the soft drinks business in Luanda in 1999, and invested in an additional soft drinks production facility in Lubango in 2001.

Sapa



	Producing 1.9-million litres of beer a day and employing some 900 people, South African Breweries' Alrode, Johannesburg brewery is the largest in the country (Photo: Chris Kirchhoff, MediaClubSouthAfrica.com)