South Africa’s Nampak plans bottle factory in Nigeria, Ethiopia
Nampak, a South African glass maker of beverage cans and bottles plans to open glass bottle factories in Nigeria and Ethiopia at a cost of $155 million. The company said it is part of a strategy to generate half of its profits outside of its home market in five years.
Nampak has been expanding outside of its home market due to weaker consumer demand.
The bottle plant in Nigeria would cost $90 million while the one in Ethiopia would come in at about $65 million, said Chief Executive, Andre de Ruyter.
He added that the Ethiopian factory, which would have the capacity to produce as much as 30,000 tonnes of glass per year, would have no shortage of customers.
“The Ethiopian beer market is growing extremely fast and virtually all of their glass is imported at the moment,” he said.
The factory in Nigeria, where the company already has a can factory would produce 50,000 tonnes of glass bottles a year.
Nampak reported a 6 percent drop in full-year profit on Thursday as weak consumer spending in South Africa affected demand for its cans and bottles.
The company said that the results were further impacted by losses at its glass packaging business due to delays in setting up a recently installed furnace.