Name and Location
Nampak glass bottle facility expansion project, Gauteng, South Africa.

Client
Nampak Glass.

Project Description
The project will result in the construction of an additional furnace at Nampak’s glass bottle business at Roodekop, in Germiston.

In addition to the facility’s two furnaces, a third furnace will improve overall manufacturing efficiencies and enable it to supply a wider range of bottles.

Value
The project entails an investment of R1.2-billion.

Duration
Construction on the furnace started in August last year, with the first bottle produced in August this year.

Latest Developments
Nampak Glass has increased its manufacturing capacity by 56% through the addition of a new R1.2-billion third furnace at its Germiston-based manufacturing facility.

The addition of the new furnace, which has the capacity to produce up to 1 700 glass bottles a day, or 300-million bottles a year, increases the manufacturer’s production capacity from 195 000 t/y to 315 000 t/y.

Speaking at the launch of the furnace and a celebration of Nampak Glass’ thirtieth anniversary, Nampak Glass CEO André De Ruyter said glass manufacturing was a capital intensive business, with continuous investment being required to keep up with technological innovation and market demand.

He added that the furnace was also already 15% more energy efficient than the other two furnaces, with an additional 12% to 15% efficiency improvement expected to be achieved once the furnace’s preheating technology was activated later this year.

New technology in terms of wastewater harvesting has also reduced the facility’s water requirements to one-tenth of its previous needs.

During peak construction, 2 600 people were employed at the project, with the new furnace also having created 140 direct long-term jobs, De Ruyter pointed out.

Also speaking at the launch, Trade and Industry Minister Dr Rob Davies stated that manufacturing sector growth and investment were pivotal if South Africa wanted to place its economy on a new and sustainable growth path.

He said the growth path the South African economy was currently on had run out of steam and that now was the time to move up the value chain.

Meanwhile, Nampak has with this investment benefitted from the Department of Trade and Industry’s Section 12I tax incentive, which is aimed at facilitating greater energy efficiency and skills development in the manufacturing sector.

Davies said that, under the Section 12I incentive, the construction of the third furnace had received a R550-million investment allowance, as well as a R1.5-million training allowance.

He added that it was encouraging that Nampak was working with small businesses for the collection of glass.

He pointed out that active supplier development and the involvement of small business would be an important element in terms of achieving a better black economic-empowerment scorecard from May next year onwards.

Key Contracts and Suppliers
Dickinson Group (refractory installation).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Nampak, tel +27 11 719 6300 or fax +27 11 444 5761.
Dickinson Group, tel +27 16 421 3720.