INTERVIEW-SABMiller Zimbabwe unit targets $112 mln capex

Wed May 19, 2010 1:05pm GMT
 

HARARE May 19 (Reuters) - SABMiller's Zimbabwe unit will spend $112 million in the next two years to ramp up output, the chief executive said, as it bets the recovery from economic crisis will boost demand for beer and soft drinks.

Delta Corporation (DLTA.ZI: Quote), in which SABMiller (SAB.L: Quote) (SABJ.J: Quote) has a 36.8 percent stake, was one of the companies hardest hit by Zimbabwe's economic meltdown in 2008, which sent inflation to 5 billion percent and left the currency worthless.

Joe Mutizwa told Reuters the company will spend $56.4 million of its own cash in the year to March 2011 for capital expenditure, including the completion of a beer plant in the city of Bulawayo.

The same amount would be spent in the following year on a new soft-drink plant, brewing equipment and delivery vehicles, he said in a telephone interview.

(Reporting by MacDonald Dzirutwe; Editing by David Dolan)

 
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