Tiger Brands to spend R2.5bn in building capacity

Consumer goods group Tiger Brands announced on Thursday, 30 December 2010, that it would invest domestically in excess of R2.5 billion over the next five years in building capacity to meet demand.

"While addressing the short-term difficulties placed upon the group by the economic environment, it is important that this should not serve as a detraction from the need to invest for future growth," the company said in its annual report, released on Thursday.

Tiger said its facilities are constantly reviewed to ensure that growth is not impacted by capacity constraints.

Over the past three years the group has invested in excess of R1.8 billion in capacity expansion and upgrading of its facilities.

During 2010 the expansion of the Hennenman flour mill, at a cost of R561 million, has commenced and is progressing well towards its expected commissioning in 2012, the company explained.

The company has also authorised the expansion and upgrade of the bakery in Durban at a cost of R109 million.

The upgrade of the Pietermaritzburg bakery to a world-class facility, at a cost of R187 million, was successfully completed and commissioned during September 2010.

The bakery is performing very well and in line with expectations.