East African Business Week (Kampala)
7 November 2009
Dar Es Salaam — Tanzania Breweries Limited (TBL) has announced an expenditure of about US $62 million (Tsh 82 billion) for the construction of a modern facility which is set to boost production capacity by 22 percent.
The construction of TBL's modern facility in Mbeya will make this Tanzania's fourth SAB Miller factory. SAB Miller is now ranked second among the largest beer producers in the world.
Other plants owned by SAB Miller, a South African company, which are operated by its local subsidiary Tanzania Breweries Ltd, are located in the lake zones of Mwanza and Arusha. The main plant is located in Dar es Salaam.
Speaking to East African Business Week in Mbeya last week during the event where President Jakaya Kikwete laid a foundation stone to symbolize the construction of the facility, Mr. Robin Goetzsche, TBL Managing Director, said that construction of the modern facility will not only add the number of factories in the country but it would be used to boost the production capacity of beer to 350 million hectolitres per year.
"This facility which costs about Tsh 82 billion (about US $62 million) will enable TBL to reach the market in the neighbouring countries of Zambia, Malawi and the Democratic Republic of Congo." Said Mr Goetzsche
The TBL chief further said that, in the sixteen years since they commenced operations, TBL, with two factories, had got the capacity to produce about one million hectolitres of beer annually.
The modern brewery in Mbeya, which will have the latest brewing technology in the world, is expected to create more than 200 permanent jobs after it commences full operations this year.
The brewer Board Chairman, Mr Cleopa Msuya, Tanzania's former Premier, said that among the challenges which his firm is facing now is the poor infrastructure and unreliable power supply.He added that apart from expanding the market regionally, TBL would save the company about US $4.3 million (Tsh 5.8 billion) in transport cost from the Dar es Salaam plant.
According to the company's 2008 report, SAB Miller currently owns 52.83 percent of the stake in it's Tanzania Breweries, with the rest being divided between others stake holders and the government of Tanzania.
"At this time, approximately 6 percent of the company's shares are traded on the Dar es Salaam Stock Exchange, with the rest of the shares being controlled by domestic pension and social security funds." Said the report
Last year, the company, recorded an overall production of 3.25 million hectolitres from its current breweries.
"Our volumes over the last few years have grown by about 5 percent per annum," said Goetzsche to East African Business Week in Mbeya adding, "We expect continued growth, and with it further expansion."
According to Goetzsche, TBL is currently preparing for an additional expenditure of approximately US $ 24 million to upgrade the breweries in Arusha and Mwanza as well as add a further 36,000- bottles-per-hour line at its main plant in Dar es Salaam by October.
This announcement follows the recent opening of a US $20 million 48,000-bottles-per-hour line in Dar es Salaam last month. TBL's brands include Balimi Extra Lager, Bingwa Lager, Castle Ranger, Kilimanjaro Premium Lager, Ndovu Lager, Redds Premium Cold, Safari Lager, Kibo Gold, Pilsner Ice, Trophy Lager, Eagle Lager, Safari Lager, Kilimanjaro Premium Lager and Konyagi.
Commenting on the environment impact assessment, a serious problem for most of the factories in the country, Mr Msuya said "I would like to assure people in the southern highland circuit that, the company's projected proposal has come out clean on the Environmental Impact Assessment (EIA) for this Mbeya plant."
He further added that the company's decision to renovate its facility in Mwanza comes with a view to supplying its products to the lake zone and those countries in the Great Lakes Regions.
In another development, President Kikwete said that the country needs to go all out to promote exports. "It was good to hear that the company's products are currently being exported to the neighbouring countries." he said.
Be the first to Write a Comment!
Copyright © 2009 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
