By ANTON HUAFOLO
SP Brewery yesterday announced it will invest K90 million to expand production at its breweries in Port Moresby and Lae. It is the brewery’s largest investment in its two plants in over two decades.
“The expenditure has been approved due to the company’s confidence in the growth of the local market, caused largely by the positive economic conditions,” SP Brewery (SPB) board chairman Sir Joseph Tauvasa said yesterday.
“The 2008 National Budget parameters handed down by the Somare Government has given the confidence to the board of SPB to further invest in the company’s infrastructure, namely the expansion and upgrading of our brewing facilities,” he added.
“Capacity will be increased from 60 million litres to 95 million litres during the period which the (SPB) board believes to be sufficient to cater for growing domestic demand servicing our export ambitions to Pacific Island countries, Australia and beyond.”
This is the company’s first major investment since the late 1980s.
According to Sir Joseph, the investment project would be spread over three years which the company hoped would limit disruptions to its operations.
“The expanded brewery (facilities) will allow us to produce our brands more efficiently and help us meet competitive threats should the need arise,” he said.
The capital expenditure included:
lThe construction of a new brew house in the Port Moresby brewery;
lExpanded brewery capacity in Lae;
lA new packaging line in Port Moresby brewery to improve product presentation; and
lAdditional warehouse facilities to relieve congestion.
SP Brewery is owned by local investors including Nambawan Super Ltd and international stakeholders and reputable breweries Asia Pacific Breweries and Heineken.