GZ Industries expands into South Africa with $71 million factory

GZ Industries Ltd. of Nigeria plans to expand into South Africa with the construction of a 1 billion rand ($71 million) factory, becoming the second beverage-can maker after Nampak Ltd. to have operations in the country.

The company agreed to a partnership with local packaging maker Golden Era Group and will build a plant in Johannesburg with annual capacity of 1.2 billion cans, Agbara, Nigeria-based GZI said in an e-mailed statement on Tuesday.

The factory will start operations in the second quarter of next year and supply other southern African countries, Bloomberg reports.

“This partnership with Golden Era accelerates our access to new markets across southern Africa, and consolidates our ongoing expansion efforts,” GZI Chief Executive Officer Motti Goldmintz said in the statement. “Upon completion of the plant, GZI will have the capacity to manufacture in excess of 3.5 billion aluminum beverage cans every year.”

Canmakers are investing to take advantage of rising demand for canned and bottled drinks in Africa, where many consumers are switching from subsistence existences and buying packaged goods for the first time. Johannesburg-based Nampak, the continent’s largest maker of beverage cans, is also expanding with new plants in Nigeria and Ethiopia. Businessday