15 December 2004

Any chances for direct-fired kettles

SAB, the South African division of SABMiller, has announced a R5 billion capital expenditure plan (EUR650 million) aimed at ensuring it is well placed to take advantage of a strong demand for beer and premium beers in particular. The investment plan, which is to be implemented starting next year, will involve an expenditure of about R1 billion a year for five years. Over 50 percent of this investment will be focused on expanding existing capacity within SAB’s seven breweries. As there are no plans to build new breweries, SAB may even find some cash to spare to invest in some direct-fired kettles for the production of Pilsner Urquell. At present, the group’s capacity enables it to produce 30 million hl of beer a year. In financial 2004, SAB utilised 79 percent of this capacity..

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