Lonrho Signs Agreement to Develop a 'Natural Spring' Water Bottling Facility in Lubumbashi, Democratic Republic of Congo

27 February 2008
Content from a Premium Partner
Lonrho (London)
press release

Lonrho plc (AIM: LONR) today announces that Lonrho Springs BVI, its wholly owned subsidiary, has signed an agreement whereby Lonrho Springs RDC Sprl will build a new water bottling factory in Lubumbashi in the Democratic Republic of Congo to meet the growing demand for quality bottled water being created by the economic growth in the Katanga region.

Lonrho Springs RDC Sprl is a new company, which will be owned 51% as to Lonrho Springs BVI and 49% to Classic Sprl, a local business.

The plant will be developed on a natural spring, 25km from Lubumbashi and easily accessible by road. It will be the only natural spring water produced in the region. The new plant will produce 1.3 million ltrs per month and will cost US$ 5.3 million to develop. Funding for the project will be US$ 1.3 million raised from local banks and each of the equity partners in the project will invest US$ 2 million.

Lubumbashi is experiencing significant economic growth as a result of the foreign direct investment of an estimated US$ 12 billion into the region for the development of copper and cobalt mines.

Lonrho Springs BVI is the holding company for Lonrho’s water interests. Lonrho Springs is operating or developing water bottling plants in Kinshasa in the DRC; Luanda in Angola; Johannesburg in South Africa and Maputo in Mozambique. Lubumbashi in the DRC is the latest project in the roll out of Lonrho Springs water bottling plants across the continent.

The natural spring water will be marketed in conjunction with TP Mazembe, (Tout Puissant Mazembe) the highly successful Lubumbashi football team, in an effort to promote fitness, sport and well being.

David Lenigas, Executive Chairman of Lonrho stated:

“I am delighted to announce this agreement to develop another Lonrho Springs water bottling plant in Africa. Safe and clean drinking water, at economical and affordable prices, is a key consideration as Africa continues to enjoy significant economic growth.

Lubumbashi is an exciting market; the stability in the region has generated consistent and sustained economic improvement and it is clear that Lubumbashi is developing into a centre of trade and commerce driven by its immense natural resources. This in turn generates an ideal opportunity for the development of new projects such as this Lonrho Springs water bottling facility. This is an exciting addition to the Lonrho portfolio and helps to significantly strengthen the growth prospects of Lonrho Springs.”

ENQUIRIES

  • Lonrho Plc +44 (0)20 7016 5105
  • David Lenigas, Executive Chairman +44 (0)7881 825 378
  • Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
  • Emma Priestley, Executive Director +44 (0)7867 785 177
  • Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903
  • James MacFarlane +44 (0) 20 7743 6375, +44 (0) 7841 672 831
  • Collins Stewart Europe: NOMAD to Lonrho Hugh Field /
  • Jonny Sloan +44 (0) 20 7523 8350

NOTES TO EDITORS

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.

Since 2006, the Company has invested in or acquired control of:

  • Hotel Cardoso - www.hotelcardoso.co.mz
  • Lonrho Mining - www.lonrhomining.com
  • Luba Freeport - www.lubafreeport.com
  • Fly540 - www.fly540.com
  • Norse Air - www.norseair.co.za
  • Swissta Holdings - www.swissta.com
  • SA Independent Liner Services – www.saliners.com
  • Bytes and Pieces
  • Kwikbuild – www.kwikbuild.co.za
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