GZ Industries to build can factory in South Africa
Nigerian beverage-can maker, GZ Industries Limited based in Agbara has said that it plans to expand into South Africa with the construction of a 1 billion rand ($71 million) factory in Johannesburg. This would make the company the second beverage-can maker after Nampak Ltd to operate in South Africa.
GZ Industries is partnering with a South African packaging company, Golden Era Group, to build a plant in Johannesburg with annual capacity of 1.2 billion cans, the company said in an e-mailed statement on Tuesday.
The factory will commence operations in the second quarter of next year and will supply other southern Africa countries, Bloomberg reports.
“The partnership with Golden Era accelerates our access too new markets across Southern Africa, consolidates our ongoing expansion efforts,” GZ Industries’ Chief Executive Officer, Motti Goldmintz said in a statement. “Upon completion of the plant GZ Industries will have the capacity to manufacture in excess of 3.5 billion aluminum beverage cans every year.”
Beverage can makers are investing to take advantage of rising demand for canned and bottled drinks in Africa, as many consumers are rising from subsistence living and buying packaged goods for the first time. Johannesburg based Nampak, the continent’s largest beverage can-maker is also expanding with new plants in Nigeria and Ethiopia.
Nampak shares declined 1 percent to 27.24 rand as of 1:38 pm in Johannesburg, placing the company’s value at 119 billion rand. The stock is down 38 percent this year compared with a one percent fall on the FTSE JSE Africa All-Share Index.
GZ Industries Limited is owned by a group of individual investors, Standard Chartered Private Equity, Verod Capital Management and Ashmore Private Equity.