| Wed 3 Oct 2007, 12:33 | | NPK - Nampak`s Growth Strategy Receives R600m Boos |
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NPK
NPK
NPK - Nampak`s Growth Strategy Receives R600m Boost
Media Release
Nampak Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/008070/06)
ISIN: ZAE000071676
Share code: NPK
("Nampak")
Media Release
Nampak`s growth strategy receives R600m boost
Johannesburg, Wednesday 3 October 2007: Nampak`s growth strategy has
received another boost with the announcement that the company will invest
R600 million in a state-of-the-art beverage can manufacturing facility in
Angola.
Addressing the media in Johannesburg today, Nampak Group CEO, John
Bortolan, said that while the Angola beverage can facility is one of the
most significant Greenfield investments in the company`s history, it`s part
of a series of growth initiatives, in which Nampak has invested over R1.5
billion in the past 12 months.
The Angolan beverage can facility will be built in Viana, a newly developed
industrial area near the country`s capital, Luanda. The latest beverage
can-making technology will be installed on the site and will include the
fastest beverage steel can production line in the southern hemisphere.
Commissioning is expected to take place in mid 2009.
The decision to expand into Angola is part of the company`s Africa
strategy, which includes investing in high growth areas and partnering
customers in new territories. With an annual growth rate of over 20%, the
Angolan economy is one of the most rapidly growing in Africa.
The Angolan beverage can market is estimated to be in excess of 600 million
cans per year, of which Nampak currently supplies some 400 million cans
from its South African operations. The balance is sourced from overseas
markets.
The new Nampak facility will be able to produce up to 700 million cans
annually and has been designed to accommodate a second line in order to
meet future growth.
The freed up capacity in South Africa will be available to meet growing
demand locally.
For John Bortolan, the Angolan project represents the culmination of a busy
year, which has seen the company invest in a number of growth initiatives.
"We have stated that Nampak is pursuing a growth strategy and this has seen
us focus on several specific areas."
Among the flagship projects are major investments in a cartons & labels
facility in Nigeria, as well as a paper mill and glass plant refurbishment
in South Africa.
John anticipates that the Angolan investment will form the platform for
further Nampak growth in that country.
Nampak Africa MD, Neil Cumming, said that the Angolan beverage can facility
was expected to make an important contribution to the performance of Nampak
Africa in the years ahead. "However, we plan to make an equally important
contribution to the people of Angola through job creation and skills
training, as well as the importation of world-class equipment and a
reduction in the quantity of imported cans, which will all be positive for
the Angolan economy."
Sandton
3 October 2007
Sponsor:
UBS South Africa (Pty) Ltd
Date: 03/10/2007 12:33:24 Produced by the JSE SENS Department.
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