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Article by Nampak 19 April 2006
R200 million investment into Nampak Wiegand Glass
When Germany's Wiegand-Glas formed a strategic alliance with Nampak Glass late last year, the two companies committed to a major investment programme to upgrade the Nampak Wiegand Glass local plant facilities. True to this agreement, a R200 million cash injection over the next two years will allow for new state-of-the-art quality inspection furnace equipment, palletisers and shrouding machines to increase the company's production quality, efficiencies and ultimately its total production capacity.
The Roodekop (Gauteng, [Status]) plant currently produces about 160 000 tons of glass at full capacity each year. The recapitalisation of this plant equipment will improve operating efficiencies by at least 10%, creating an additional output tonnage of approximately 15 - 20 000 tons. This will ensure that Nampak Wiegand Glass is able to continue to satisfy the vigorous demand in the market place, and gain competitive market share. It will further enable the company to expand its local range and to enter sectors of the beverage market in which it was previously not active.
Industry reports show a need for increased capacity in a growing market that is expected to rise with the growth of the economy. To date, there has been a 16% volume growth in alcohol beverages (excluding wine, [Status]), and there's an annual 10% wine export growth forecast over the next five years (according to SA Wine Industry Information and Systems, [Status]). This volume growth flows from the consumer demand for beverages in glass, where it is seen as a premium packaging type catering for the status conscious, aspirational consumer. Furthermore, the market has a profitable perception that glass is more hygienic and is a healthier packaging material.
The joint venture company currently services the following main market sectors, namely; alcoholic beverages, carbonated soft drinks, dairy, sauces and dressings. Wine accounts for about 30% of the total production demand and is regarded as a key component to the company's future growth strategy. As such, the investment programme will help create the highest quality capabilities in the production environment, a non-negotiable factor in order to compete in the growth area of wine exports.
"Nampak Wiegand Glass currently has two melting furnaces and eight production lines. This extensive capex outlay will provide us with the equipment to mature into a world-class manufacturing plant, measurable against the highest international standards. We're excited to offer our customers access to the latest technology and innovative capabilities, which this investment will bring to the company. The first four lines of the new plant equipment will be installed and in production use by the end of June 2006." says Steffen Bulbring, sales and marketing director: Nampak Wiegand Glass.
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The Roodekop (Gauteng, [Status]) plant currently produces about 160 000 tons of glass at full capacity each year. The recapitalisation of this plant equipment will improve operating efficiencies by at least 10%, creating an additional output tonnage of approximately 15 - 20 000 tons. This will ensure that Nampak Wiegand Glass is able to continue to satisfy the vigorous demand in the market place, and gain competitive market share. It will further enable the company to expand its local range and to enter sectors of the beverage market in which it was previously not active.
Industry reports show a need for increased capacity in a growing market that is expected to rise with the growth of the economy. To date, there has been a 16% volume growth in alcohol beverages (excluding wine, [Status]), and there's an annual 10% wine export growth forecast over the next five years (according to SA Wine Industry Information and Systems, [Status]). This volume growth flows from the consumer demand for beverages in glass, where it is seen as a premium packaging type catering for the status conscious, aspirational consumer. Furthermore, the market has a profitable perception that glass is more hygienic and is a healthier packaging material.
The joint venture company currently services the following main market sectors, namely; alcoholic beverages, carbonated soft drinks, dairy, sauces and dressings. Wine accounts for about 30% of the total production demand and is regarded as a key component to the company's future growth strategy. As such, the investment programme will help create the highest quality capabilities in the production environment, a non-negotiable factor in order to compete in the growth area of wine exports.
"Nampak Wiegand Glass currently has two melting furnaces and eight production lines. This extensive capex outlay will provide us with the equipment to mature into a world-class manufacturing plant, measurable against the highest international standards. We're excited to offer our customers access to the latest technology and innovative capabilities, which this investment will bring to the company. The first four lines of the new plant equipment will be installed and in production use by the end of June 2006." says Steffen Bulbring, sales and marketing director: Nampak Wiegand Glass.
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