| Wed 3 Apr 2002, 0:00 | | Sab Reorganises Its Operations In Romania |
|
London and Johannesburg, 3 April 2002. South African Breweries (SAB) has
announced a restructuring of its operations in Romania, as part of an on-
going programme to improve its operating and financial performance in the
country.
SAB's two Romanian companies, SC Ursus SA and SC Bere Timisoreana SA
(acquired by SAB in August 2001) are to merge into a single beer company.
The new company, to be called Compania de Bere Romania (CBR), once the
normal Romanian company processing requirements are completed, will have its
headquarters in Cluj-Napoca, branches in Timisoara, Pitesti, Buzau, Afumati
and an office in Bucharest.
The main brands to be produced by CBR are Ursus Premium, Timisoreana Lux,
Ursus Pils, Timisoreana Classic and Keller Lager. The current distribution
networks of SC Ursus SA and SC Bere Timisoreana have already been unified
into a new national network of distributors with this strong portfolio of
brands.
Beer production and packaging at Pitesti brewery will cease from the end of
May, although a company branch and maltings will continue to operate in
Pitesti, and sales operations in the area will be unaffected. Production at
SAB's three other breweries in Romania at Timisoreana, Cluj-Napoca, and
Buzau will be unaffected by the reorganisation.
Altogether, 190 staff will be effected. SAB Romanian management is in
consultation with the local union body over the closure of brewing
operations in Pitesti and the effects of the restructuring within the
company generally. Wherever possible, the company will seek alternative
posts within the company for employees. Where that is not possible it will
provide severance packages in line with employees' contracts and offer
professional outplacement support.
Steve Woodward, SAB's country managing director in Romania said: "The new
structure will help to reduce costs and increase the overall performance of
the new company. Though regrettable, the closure of Pitesti Brewery is a
necessary step to ensure that we maintain a leading position in a very
competitive national market place and continue to focus on growing and
developing our market share.
"SAB remains committed to the Romanian market. The beer industry has been
very turbulent in recent times. According to the Association of Romanian
Beer Producers (APBR), the market has declined by eight percent in the last
12 months and predicted future trends indicate slower recovery than desired,
particularly in a climate where the excise advantage for other forms of
alcohol over beer is so significantly contrary to European norms. This has
caused us to make some very difficult decisions but we believe that the
reorganisation we have announced today is in the best interests of the
business in the long term."
ENDS
Notes to editors
1. South African Breweries plc (SAB) is the world's leading brewer in
developing markets. Listed in London, SAB has interests in Africa, Central
and Eastern Europe, Central America and Asia, and is the world's third
largest brewer overall by volume with 108 breweries in 24 countries and over
31,000 employees.
2. In the year to 31 March 2001, SAB generated US$646 million pre-tax
profit from a turnover of US$4.184 billion. SAB is listed on both the
London and the Johannesburg stock exchanges.
3. SAB has been operating in Romania since 1996 and currently runs four
breweries with a total capacity of 2.6 million hectolitres, employing around
1,400 people. SAB's existing operations are located in Timisoreana, Cluj-
Napoca, Pitesti and Buzau.
For more information please contact:
Ciaran Baker
Head of Corporate Communications,
South African Breweries: +44 20 7659 0120
