Page 70 - Glass Machinery Plants & Accessories no. 5-2019

COUNTRY OUTLOOK
Country outlook
tion lines at its site southeast
of Johannesburg with installed
capacity of 285,000 tonnes. The
company has a share of 18 per
cent of the beer market, 25 per
cent share of flavoured alcoholic
beverages, 21 per cent share in
the wine market and 67 per cent
share of the spirits market.
To meet the growing demand
from wine makers, Nampak
Glass invested ZAR 1.2 billion © Creamer Media
in setting up the company’s third
furnace in 2014 at its manu-
facturing facility in Roodekop,
Gauteng. This increased the
plant’s capacity from 195,000
to 285,000 tons a year. When
the Nampak Glass factory was
officially opened in 1984 it had
a single-furnace capable of pro-
ducing enough glass for 11 per
cent of the South African mar-
ket. During construction, provi- Between 2005 and 2008, the cash flow. Accordingly, Glass has
sion was made for a second fur- company made investments of been accounted for as a non-
nace, which was added that year. ZAR 320 million, towards the current asset held for sale and a
The addition of a third furnace rebuilding of the first furnace and discontinued operation. A formal
was a significant investment for implementing narrow neck press disposal process is progressing
Nampak as it enabled the com- and blow technology. and is expected to reach its con-
pany to increase its capacity by In 2011 Nampak Glass acquired clusion in the first half of the
56 per cent, thus strengthening a 50 per cent share from German 2019 financial year.”
its position in the South African glass manufacturer Wiegand-Glas
container glass market. for ZAR 938 million. GLAMOSA GLASS
With the addition of the third In 2018, Nampak’s manage- Established in 1958 in a small
furnace, Nampak Glass intro- ment took a decision to dispose factory in Elandsfontein near
duced a range of wine bottles that of Nampak Glass as its finan- Germiston, Gauteng, Gamosa
replaces 750-ml wine bottles that cial returns had failed to meet Glass is a small tableware and
weigh 450 g or more with the lat- required levels due to inadequate container glass producer. In 1970
est standard of 410 g and some skills, high capital expenditure a new factory was built in the
weighing as little as 380 g. This and high fixed costs. The com- town of Estcourt Kwazulu Natal
provides customers with more pany’s sales revenue in 2018 at from where the company oper-
environmentally friendly options ZAR 1,457 million, registered an ates at present. Initially Glamosa
in which to export their wine. increase of over 2 per cent over (Short for Glass Mosaic) pro-
The first and second fur- the sales revenue of ZAR 1,420 duced vitreous glass mosaics in
naces were built by Metal Box million registered in 2017. a wide range of colours. Today
(MB) Glass Works in 1983 and According to a notification glass mosaic is no longer pro-
1986 respectively. Nampak took from the company, “Following duced.
over MB in 2003 and entered a careful review of the glass In 1980 Glamosa Glass start-
a joint venture agreement with business, challenges in leverag- ed manufacturing a new range
Germany-based Wiegand Glas ing economies of skill and scale, of lamp shade glass products,
in 2005. The agreement was and significant capital require- including many blown, pressed
entered with the objective of ments, the board decided, on 16 and spun glass ware products. In
boosting the existing Nampak February 2018, to dispose of the 2009 Glamosa Glass identified
facility by upgrading and enhanc- glass business in order to free up the need in the glass contain-
ing the production facilities and cash for potential growth, debt er market for niche customised
expanding capacity. reduction and to enhance free short run glass containers. O

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