CLR - Clover board approves additional R277 million capital expenditure
CLR
CLR
CLR - Clover board approves additional R277 million capital expenditure
programmes; R627 million total approved capex programme underway
CLOVER INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
JSE ordinary share code: CLR ISIN: ZAE000152377
("Clover" or "the Company" or "the Group")
CLOVER BOARD APPROVES ADDITIONAL R277 MILLION CAPITAL EXPENDITURE PROGRAMMES;
R627 MILLION TOTAL APPROVED CAPEX PROGRAMME UNDERWAY
Clover`s shareholders are advised that the Board of Directors (the "Board") has
approved capital expenditure programmes to the value of R277 million in addition
to Project Cielo Blu, bringing the total amount of capex programmes to R627
million. Business cases were presented and approved for projects including the
relocation of Clover`s cheese manufacturing facilities to the coast, increased
collection capacity in certain regions and various value added packaging
initiatives.
The various new projects will be funded from internal resources, including
listing proceeds not earmarked for Project Cielo Blu. Some of the projects will
commence immediately, whilst others will only start after the completion of
certain phases of Project Cielo Blu.
Johann Vorster, CEO for Clover commented:
"The Board`s approval of R627 million in capex programmes (including Project
Cielo Blu) is a major milestone following our listing and is indicative of
Clover`s commitment to the South African economy in general and the dairy
industry specifically.
Our low gearing and strong cash generation enables us to take advantage of
opportunities to continuously address historical inefficiencies. It also allows
us to act on innovative value-added initiatives to maintain our market
leadership position. We expect to see the benefits of these improvements to come
through over the next thirty sixth months."
14 June 2011
Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Enquiries:
College Hill 011 447 3030
Frederic Cornet 083 307 8286
Morne Reinders 082 815 1844
Date: 14/06/2011 14:15:01 Produced by the JSE SENS Department.
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