GZ Industries to invest $71m in new South African can production plant

Nigerian beverage can maker GZ Industries is reportedly planning to invest close to $71m in a new manufacturing plant in South Africa.

The company formed a joint venture, Gayatri GZI Beverage Cans, with local packaging maker Golden Era Group for the construction of the proposed plant, Daily Times reported.

Expected to become operational in the second quarter of 2016, the plant will be capable of producing close to 1.2 billion cans annually.

The cans manufactured at the plant will be supplied to customers in other southern African countries.

With the addition of the new plant, GZI's production capacity will increase to over 3.5 billion aluminum beverage cans every year

GZ Industries CEO Motti Goldmintz was quoted by Bloomberg as saying: "This partnership with Golden Era accelerates our access to new markets across southern Africa, and consolidates our ongoing expansion efforts.

"Upon completion of the plant, GZI will have the capacity to manufacture in excess of 3.5 billion aluminum beverage cans every year."

Gayatri is expected to compete with South African beverage can maker Nampak, which is also increasing its production capacity with new plants in Nigeria and Ethiopia.

GZ Industries is to commission a new plant in Nairobi, Kenya in 2016.

The Kenyan can plant, which will be the first can manufacturing facility in Eastern Africa, will supply cans to all bottlers and brewers in Kenya, Tanzania, Ethiopia, Uganda and Rwanda.

The increasing demand for canned and bottled drinks in Africa is attracting investments from can making companies.