Wednesday, Dec 1st 2021 12:04 PM
Lagos
+29°C

Market Digest Nigeria

Business

NB PLC invests $114 million in project expansion

Nigerian Breweries (NB) Plc yesterday disclosed that it had reached about 56 per cent in local sourcing of raw materials and injected up to $114 million (N55 billion) in capital investments and expansion projects to create more wealth for the economy

NB Plc

At a media parley to commemorate the firm’s 75th anniversary in Lagos, the company’s (NB) Corporate Affairs Director, Sade Morgan, said the company had invested up to N98 billion in the cultivation of local raw materials, in addition to sorghum and cassava value chains through commercial purchase and smallholder farming in the last five years.

She said: “NB Plc, in its bid to build a resilient economy through sustainable capital investments, have injected about $114 million in capital investments and expansion projects scheduled for 2021/2022 in Ama (Enugu) brewery.

“The company has prioritised import substitution and accretion for foreign reserve with N78 billion in investing and cultivating locally sourced materials in the last 5 years and N20 billion in sorghum value in 2021 through commercial purchase and smallholder farming.”

Morgan noted that despite the pandemic in 2020, the company kept to its strategy of delivering satisfaction and growth, adding that the Nigerian economy still remains an exceptional market with the right fundamentals for growth.

According to her, the company is strategically focused to achieve a 100 per cent target in local sourcing of raw materials, especially in the availability of local ingredients needed for production.

“We have done about 56 per cent in local material sourcing but our packaging material is at 100 per cent. The challenge with the raw material is the availability of local ingredients that goes into making most of our products.

“So that is an area where we will continue to pioneer as we did in backward integration for sorghum but for now, we want to be able to satisfy our consumers and give them the same quality of beer that they can get anywhere in the world.”

Also speaking, the newly appointed Managing Director, Hans Essaadi, revealed that the company intended to invest significantly in business expansion as part of its growth strategy and objectives.

“We have grown with Nigeria and it is clear that moving forward, we will continue to invest significantly in capacity extension to meet our objectives as well as demands in the market.”

“We should expect much of this extension in the East and Northern part of the country and our majority shareholder, Heineken is committed to this and this is good as it will bring direct and indirect job opportunities for Nigerians”, he said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top
SUBSCRIBE NOW!
Get the best of Market Digest Nigeria financial news
delivered to your inbox daily!
By clicking Give it a try, I hereby: Agree and Consent to the Terms of Use and the Privacy Policy
& I may receive free newsletters & promotions from this site and can choose to unsubscribe anytime.