South African Breweries (SAB) has secured a local foothold in glass manufacturing, as a result of its 35%-owned Isanti Glass subsidiary finalising the acquisition of Nampak Glass.

Isanti Glass in September last year announced that it would acquire Nampak Glass for R1.5-billion. Nampak Glass has a manufacturing facility at Roodekop, in Johannesburg, producing about 285 000 t/y of glass containers.

The transaction has created the first majority black-owned glass manufacturer in South Africa, which helps SAB deliver on its commitment to government to convert all its existing suppliers – to fall in line with the country’s transformational goals.

Isanti is 60%-owned by investment group Kwande Capital, with SAB holding 35%, and the balance held by Isanti employees.

Through Isanti, SAB has access to a glass plant with three furnaces, nine forming machines, a cullet processing facility and 690 employees.

SAB corporate affairs VP Zoleka Lisa says the deal aligns with South Africa’s National Development Plan, while ensuring the security of supply for SAB in the medium and long term.

Additionally, it enhances the company’s circular packaging commitment through the use of cullet (broken glass) in its glass containers.

Isanti Glass has a diverse client base, including beer, soft drinks, wine, spirit and food processors. Isanti will continue to supply these clients while also becoming a key glass supplier for SAB.

AB InBev, which wholly owns SAB, is already one of the largest glass producers in the world.

“We therefore have an in-house vertical operations team with a proven track record of running such plants. This team will provide the technical input for the initial operating years of the plant,” says Lisa.

She says the intention is to install world-class operating procedures and ensure the skills and knowledge are transferred to SAB’s partners in time.