Nairobi
Bottlers Limited, Coca-Cola’s leading local independent bottling
franchise, has invested Shs1.2billion in a new preform manufacturing
plant as the demand for plastic bottled products increases.
The
new state of the art facility will enable the company to produce
preforms used in the manufacture of plastic bottles for packaging of
Coca-Cola range of soft drinks
and Dasani water. Previously, Nairobi Bottlers has been sourcing these
raw materials from independent suppliers in the country. The
huge investment is part of Nairobi Bottlers’ growth strategy as it
strives to take advantage of emerging opportunities both locally and in
the export markets within
the region. The new facility takes the total investment by the company
alone to over Shs3billlion within a year.
Speaking
during the commissioning of the preform plant situated along Nairobi’s
Kangundo Road, Nairobi Bottlers Managing Director Patrick Pech said the
setting up
of the facility was informed by the growing demand for plastic bottled
products which meant spending huge sums of money sourcing for preforms
to make the plastic bottles.
The
new facility is expected to help the company save millions of shillings
it has been spending on buying preforms from independent suppliers.
Pech noted that the
funds saved will be redirected towards Nairobi Bottlers’ business
expansion programs.
“Looking
at the projected growth of our business and need to expand our business
to better meet consumer needs, we made a decision to invest
aggressively including
setting up a PET line last year and now this facility. That decision
today presents us with the opportunity to grow our business year on year
and at the same time help meet the ever-increasing consumer demand for
Coca-Cola brands,” he said.
The
two preform manufacturing machines installed at the plant have the
capacity to produce over 0.9 million pieces of preforms per day, which
will be able to meet
the demand both locally and for the export market
The
company is looking to export the preforms initially to the East African
Community (EAC) markets starting with Uganda and Tanzania and later
Ethiopia and Mozambique.
According to the company, there is growing demand for plastic compared
to glass which currently controls 70 percent of the packaging.
Last
year, the company invested Shs1.26 billion in a PET (plastics)
manufacturing line in Embakasi, Nairobi and is looking to double the
investment within the next
two years in order to keep pace with the expanding market. The PET line
produces 28,000 bottles per hour, more than doubling Nairobi Bottlers
capacity to 12 million physical cases annually.
The
introduction of the new facility is also expected to create employment
directly at the plant and indirectly through the value chain of
collectors and transporters.