Nampak to Increase Capacity at Nigerian Carton Plant
Feb. 14, 2006 (Press Release) - Nampak, Africa's largest packaging company, has significantly increased its investment in Nigeria, following a recent board decision to spend a further R80 million (US$13.1 million) on capacity enhancements at the company's cartons manufacturing facility near Lagos.
Last year, Nampak committed an estimated R150 million towards developing a manufacturing facility to support British American Tobacco's packaging requirements in the West Africa region. Initially, one line was installed in temporary premises, while the construction of a permanent plant commenced on a green fields site.
However, the volumes have been more than originally anticipated and the temporary plant is already running at full capacity. Given BAT's requirement for added volumes, as well as inquiries from other customers operating in the area, Nampak has decided to invest in a second line.
The civil plans were originally developed with a view to growing the plant's size after a number of years. This long-term approach has enabled Nampak's Cartons & Labels Division to make the adjustments required to accommodate a second line, in a fairly quick and uncomplicated manner.
The new plant is scheduled to be commissioned at the end of 2006.
According to Nampak Africa's Managing Director, Neil Cumming, the facility is on track, with the company expecting the second line to increase revenues accordingly. He says that the line should bring some additional capacity, which will also allow Nampak to look at servicing the needs of other customers in the area.
The company's investment in Nigeria is part of Nampak Africa's growth strategy, which involves partnering with multi-nationals and other customers as they venture into new markets.