Afdis shareholders approve $5m rights offer

Afdis shareholders approve $5m rights offer
Published: 10 December 2013
SPIRITS maker African Distillers shareholders have approved a $5 million rights offer that is earmarked for the procurement of a new ready- to-drink plant that has the capacity to produce 27 000 bottles an hour.

The plant, which will make 20 million litres of ciders annually, will be commissioned in July 2014.

The funds will also be channelled towards upgrading of the existing manufacturing plant at the company’s premises in Stapleford.

The company had since secured an estimated cost of $1,5 million as shareholder loans from Delta Corporation and South Africa-based Distell which has since been paid to the German firm supplying the Kronz plant.

Speaking in an interview after the extra ordinary general meeting, Afdis marketing sales and distribution director Mr Albert Chitapi said the new plant would more than triple cider volumes to over six million from the current two million while over the next five years, production is expected to increase five-fold.

"The plant will enable the company to be competitive in the regional market and meet the ever growing demand from discerning consumers. Last year we imported two million litres of ciders, we will also import about the same quantities this year.

However, once we start local production, that number goes to 6,6 million litres with 50 percent being produced for local consumption while the difference will cater for the export market in Zambia Malawi and Mozambique. As that number progressively grows in 2016 and 2017, it will be in the ranges of 10 to 12 million litres, while the 50-50 split is maintained."
- herald
Tags: Afdis,


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