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Consol Glass invests R1.9-Billion in new glass factory in Nigel
08 March 2010  by Simonsays Communications
Consol Glass (Proprietary) Limited, the largest glass manufacturer in Africa, has announced that it will go ahead with its new Greenfield glass factory in Nigel south of Gauteng.
At an investment cost of R1.9-billion the move clearly demonstrates the group's commitment to the growth of the glass packaging industry.

According to Consol group managing director, Mike Arnold, the additional capacity will increase Consol's annual output by a further 25 percent or 220,000 tons, taking its total glass production to over one-million tons per annum; in excess of four-billion glass containers.

While current production capacity exceeds demand, this expansion will ensure there is sufficient supply to meet the future market growth expectations. The new glass factory will be designed initially to be a two furnace operation, each with an output of 400 tons per day and will be built in two phases.

The first phase, costing R1.3-billion will consist of all the factory infrastructure development, the production service equipment and the first of two furnaces, which will be commissioned by September 2011. While current production capacity exceeds demand, Arnold says that this expansion will ensure there is sufficient production capacity to meet foreseeable market growth expectations.

Lead time for installation and commissioning the second furnace will be under nine months. The installation of the second phase costing R600-million, will be dependent and driven by market growth and demand. As all the infrastructure and services will already be in place, the lead time for installation and commissioning of the second furnace will be less than nine months.

In addition to the Nigel expansion, production capacity in the Western Cape will be increased by a further 10 percent or 30 000 tons per annum. To ensure that there is a regional balance in supply and demand a further decision has been taken by the group to increase production capacity in the Western Cape by a further 30 000 tons per annum; an increase that equates to a 10 percent increase.

This expansion is scheduled to take place during the Consol Bellville No 4 furnace rebuild in late 2011 or early 2012, increasing the manufacturer's production capacity of glass containers to 1.1-million tons per annum. "In addition to this already sizeable investment, our future capital expenditure plans also include the provision of a new cullet processing plant at our Wadeville and Bellville sites.

This will ensure that we are in a position to maximise glass recycling in South Africa," concludes Arnold. For further information on Consol Glass, visit www.consol.co.za
 
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