NIGERIA – The Greek commercial refrigeration and glass manufacturer, Frigoglass has announced that it will invest between US$28.4 million and US$34.1 million in increasing its capacity and revamping its glass operations in Nigeria.
According to the Beverage Industry News report,the investment will increase capacity at the company’s Beta Glass Guinea plant,located in Agbara, Ogun state in Nigeria by 35,000 tons per year.
It will go into establishing a new furnace to replace an existing one that has reached the end of its life, an additional production line, upgrades to existing production lines, as well as new inspection equipment to strengthen the plant’s capabilities.
The new furnace has an expected productive life of more than 12 years, and together, all the investments looks to enhance growth in the company’s glass business across the West African region.
“This strategic initiative demonstrates our commitment to implement investments that will enable the group’s future growth.
“It supports the growth of our international and regional beverage customers in the high growth potential West African region,” said Frigoglass CEO Nikos Mamoulis.
The plant will also pioneer the use of Narrow Neck Press and Blow (NNPB) technology, which will enable production of lighter weight non-returnable glass bottles for the first time in West Africa.
The project is expected to become fully operational in 2020.
“This new larger furnace secures the livelihoods of our existing employees in Agbara and creates not only additional jobs but also shareholder value and contributes positively to the development of the local community,” said Darren Bennett-Voci, Glass Division Director of Frigoglass and Managing Director of Beta Glass.
Speaking on the investment, Abimbola Ogunbanjo, Chairman of Beta Glass, said: “We continue to implement investments to better cater to the growing needs of our customers for glass packaging.”
Beta Glass recorded a 58% increase in net income to US$9.64 million for the nine-months period ended September.
Operating profit grew 68% as a result of lower selling and distribution expenses and growth of other income.