Zimbabwe: Delta Corporation to invest US$50 mln in boosting production capacity

Zimbabwe Stock Exchange (ZSE) listed Delta Corporation plans to invest US$50 million over the next five years to boost its production capacity, The Herald reported on August 1.

Zimbabwe’s largest beer and sparkling beverages maker said it would spend between 30 and 35 percent of its operating profit on plant, equipment and ancillary services.

The company has since 2017, invested more than US$169 million in modernising its manufacturing and bottling plants, distribution fleet, cold drink equipment and ancillary systems.

About a month ago, the company commissioned three new production lines after investing US$71 million.

“All the businesses are performing very well. Capacity utilisation is on average above 80 percent and almost 100 percent in some businesses hence the need to invest US$70 million in new packaging plants commissioned by President Mnangagwa,” said Delta.

New plant investments are split into lager beers US$15 million, Chibuku Super US$20 million, soft drinks PET Line US$10 million, vehicle fleet US$5 million, containers US15 million and US$1 million in its associate company, Afdis.

The new lager plant runs four types of bottles; 375ml and 340ml bottles which produce 42 000 bottles per hour or 700 bottles per minute as well as 750ml and 660ml bottles which run at 25 000 bottles per hour or 417 bottles per minute.

This gives a daily production of about 350 000 litres per day while raising the national beer packaging capacity from 2,2 million hectolitres (220 million litres) to 2,9 hectolitres (290 million litres) per annum.

The equipment was manufactured in Germany, by a leading beverage equipment manufacturer, Krones. Delta said the soft drinks packaging line has the capacity to produce 700 000 hectolitres or 70 million litres per annum.

The line has capacity to run three types of bottles; 350 ml and 500ml bottles at 30 000 bottles per hour or 500 bottles per minute as well as two-litre bottles at 11 000 bottles per hour or 183 bottles per minute.

This will increase the total capacity utilisation of the sparkling business unit to 47 percent.

The new Chibuku line can fill 20 000 bottles per hour, equivalent to 250 hectolitres. The annual output is 1,3 million hectolitres.

Delta said it had taken a farmer-centric approach to ensure 100 percent of “our direct farmers will be skilled, connected and financially empowered by 2025.”

“Today we work with over 11 500 farmers including both commercial-scale and smallholder farmers. A contracting split of 92:8 (in terms of tonnage) between communal and commercial sector was achieved for 2022 in sorghum production.

“In barley production 120 commercial farmers were contracted. We continue with efforts to integrate marginalised communities in the scheme and maintain mutually favourable terms,” said Delta.

The company requires about 35 000 tonnes of barley per year, 20 000 tonnes sorghum grain, 60 000 tonnes of maize (Chibuku, lagers and Maheu).

It uses 20 000 tonnes of sugar, mainly for Coca-Cola and maheu.

03 August, 2023