Lisbon — The Portuguese group Sumol Compal intends to start production of its non-alcoholic drinks in Mozambique in March.

Sumol Compal is one of main Portuguese producers of fruit juices and nectars. Its drinks are imported into Mozambique, but are considerably more expensive than the South African fruit juices that currently dominate the market. Local production may lower the price and make it easier for the Portuguese company to compete.

According to a statement from the company in Lisbon, Sumol Compal has signed a contract "to purchase an industrial installation on the outskirts of Maputo plus assorted equipment in order to produce our brands locally".

A subsidiary, Sumol Compal Mocambique, has been set up, which is 90 per cent owned by the Portuguese group. In the first year of its activities in Maputo, it plans to invest eight million euros (about 10.4 million US dollars).

Sumol Compal adds that, in addition to supplying the drinks to the Mozambican market, it hopes to export them to other members of the Southern African Development Community (SADC).

The company says that this project is a further step in the internationalization of its activity, which Sumol-Compal regards as a fundamental strategy for the coming years.

In 2011, Sumol Compal's sales on international markets reached 80 million euros, 30 per cent higher than the figure for 2010.