Clover approves R277m capital expenditure

15 Jun 2011

Clover Industries' board has approved R277 million worth of capital expenditure in addition to Project Cielo Blu. This brings the total amount of capital expenditure programmes to R627 million, the company said on Tuesday, 14 June 2011.

Business cases were presented and approved for projects including the relocation of Clover's cheese manufacturing facilities to the coast, increased collection capacity in certain regions and various value added packaging initiatives, said the consumer goods and beverages group.

CE Johann Vorster said: "The board's approval of R627 million in capex programmes [including Project Cielo Blu] is a major milestone following our listing and is indicative of Clover's commitment to the South African economy in general and the dairy industry specifically.

"Our low gearing and strong cash generation enables us to take advantage of opportunities to continuously address historical inefficiencies. It also allows us to act on innovative value-added initiatives to maintain our market leadership position. We expect to see the benefits of these improvements to come through over the next thirty sixth months."

Project Cielo Blu entails the relocation of the long life products plant from Midrand to Port Elizabeth and Pinetown, the incorporation of the central Johannesburg beverages factory into the Midrand facility and the expansion of several other production and distribution sites.

Source: I-Net Bridge

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