Beta Glass, a Nigerian-based glass maker, has received $30 million for the expansion of its glass and packaging business.
The company disclosed this in a statement released to the Nigerian Stock Exchange, where it stated that the investment fund will be used to expand its furnace capacity at its manufacturing plant located in Agbara, Ogun State.
Expected to begin operations in the second half of the coming year, it stated that the new machine will boost the company’s production capability by 35,000 tons while pioneering the use of the Narrow Neck Press and Blow (NNPB) technology in Africa.
The furnace is expected to have an active production capacity with a life span of 12 years and will replace the existing furnace which will complete its expected life span by 2020. Consequently, the use of the new furnace will encourage increased productivity and enhance operational efficiency as it is equipped with additional production line and quality inspection instrument.
In addition, the furnace will enable the company to act as pioneers in the introduction of the lighter weight as well as non-returnable glass bottles to the Nigerian market, giving the company a competitive edge in the global market while strengthening its position as a force in the glass bottles and complimentary packaging products in West Africa.
In the statement, Abimbola Ogunbanjo, chairman, Beta Glass, said, “The new furnace will enable us to leverage the latest technology and our technical expertise to make world-class glass packaging products in Nigeria whilst promoting sustainability and improving our environmental footprint this investment will enable growth and create long term value for both our shareholders and society,” he said.
Darren Bennett-Voci, managing director of the company, said the new furnace will significantly enhance the company’s ability to meet the growing demand for glass bottles and jars in Nigeria and across West Africa as well as create a number of new jobs, both direct and indirect.
Analysis of the company’s half-year financials for the year 2019 show that its revenue from customer contracts stood at N14.4 million, representing a marginal increase of 9.92 percent from the N13.1 million recorded in 2018. But its gross profit dropped by 20 percent to N2.9 million from N3.1 million realized in 2018.
The company’s profit before tax dropped as well to 3.4 million from the 3.5 million accrued to them in the previous corresponding period. Consequentially, its total comprehensive income experienced a decline by stood at N2.33 million from the N2.39 million recorded in the previous year.
Experts believe that the investment and business expansion will improve the firm’s financial books.
At the annual general meeting held earlier in the year, Ogunbanjo had said, “We have also commenced preparations towards furnace rebuild in Agbara plant, which is scheduled for H1 2020. This furnace rebuild is a strategic project targeted at the transformation of the company’s glass capacity for Nigeria and the export markets, for the anticipated growth and demand for glass in Nigeria.”