South African Breweries (SAB) announced on Monday (November 28) the company’s intention to expand its Kwa-Zulu Natal factory. To formally present their plans SAB invited the Kwa-Zulu Natal Premier Nomusa Dube-Ncube, the MEC of Economic Development, Environmental Affairs, and Tourism Siboniso Duma. The meeting proved to be fruitful as both parties were eager to see SAB’s expansion plans move forward.
SAB has planned to make a large investment of R825 million into the expansion of its Prospection Brewery located in Durban. The expansion of the Prospection Brewery is estimated to create 25, 000 jobs across different sectors. Given the size of SAB, their expansion will also increase business for local suppliers working in the brewery industry, as well as contribute to expanding the market in goods and services. The overall expansion of the Prospection Brewery is set to yield significant economic growth, which is expected to generate R4.4 billion,adding to the GDP of the economy.
The expansion of the Prospection Brewery will include a new facility dedicated to a new ‘Flavoured Alcohol Beverage Blending Plant’, with the opening of the facility a new skilled workforce will be required to oversee the project. The project will create 56 full-time employment opportunities, where those who become employees will be provided workshops aimed at improving their skills to operate the specific machinery that comes with working at a flavour blending plant.
SAB already employs 572 people in the province of Kwa-Zulu Natal, of which half work out of the Prospection Brewery. Overall, SAB contributes to supporting over 17 000 jobs through the sheer size of their business; this accounts for a margin of 0,7% of employment in the province. Therefore, the expansion of their Durban facility will have a profound impact on generating jobs and revenue.
The expansion of the Prospection Brewery is not the only investment SAB has committed to this year, as the company hasalready put a further R270 million into their Eastern Cape brewery. When taking that into account SAB has pledged R4.5 billion into growing their business. Their aggressive investment plans should however, come as no surprise given the company’s large market in the brewery sector, as the world’s largest brewer in the world. Thus, to remain competitive the company has to maintain its growth and expanding their breweries is one way in which to go about achieving that.
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