12th Dec 2007 09:44
Lonrho PLC12 December 2007 12th December 2007 LONRHO PLC (Lonrho or the 'Company') Lonrho expands it's African water bottling division and announces a US$ 9 million project to serve the booming Angolan market Lonrho (AIM: LONR), the conglomerate with a structured portfolio of Africaninvestments, is pleased to announce that it's water division, Lonrho Springs,has signed an agreement to develop a major new water bottling plant in Luanda,Angola. Following an extensive market review and analysis of the projected futurebottled water requirements in the country, Lonrho is establishing a new Angolansubsidiary, Lonrho Springs Angola Lda, ( LOSA ) that will develop the projectand operate the business. The new factory and buildings of 1,500m2 will be developed close to Caxito, inthe Bengo state, 35km from Luanda, where land has already been secured for theproject, and ground water tests completed. The new production plant will beideally situated to service the existing market demands of Luanda and close tothe proposed development of New Luanda city. The new factory will be built to ISO standards and the 'Swissta' internationalstandard for producing bottled water and will provide a quality and safe productfor the Angolan market, utilising the highest standards of international waterprocessing technology to ensure consistent and reliable production. The mineral water will be extracted from bore holes, and will be enriched withminerals to provide a product with the optimum levels of safety, health andtaste. In addition to mineral water, the plant will also provide a range offlavoured and vitamin enriched waters. Two distribution bases of 1,000m2 each will be developed for the business in thekey market areas in Luanda. These will aid distribution to overcome thedifficult logistics currently experienced in the market. The distributioncentres will be replenished with product overnight, thus avoiding the trafficcongestion in Luanda The plant is designed to produce 4.5 million litres of water per month,distributed in a range of sizes from 0.33ltr through to 20ltr units. The project is expected to cost US$ 9 million to complete and plans are to beproducing water for the market by the end of 2008. The project will be funded asto 40% equity funding and 60% debt funding from Angolan commercial banks. LOSA is a strategic investment for Angola. Each of the founding investors areparticipating in the company by way of either land or cash investments, and theequity participation is as follows : Holding Investor 55% Lonrho Springs BVI The Lonrho Plc wholly owned subsidiary developing water projects throughout Africa 15% GEF Management Corporation A Washington based investment fund 15% Angolan Business Corporation An Angolan investment company 15% R2J Lda An Angolan investment company David Lenigas, Lonrho's Executive Chairman commented: "This is a significant step for the continuing roll out of Lonrho Springs as awater bottler across the African Continent. The combination of the latestpurification and bottling technology combined with modern plant and equipmentwill ensure that the water is of the highest possible quality. Angola is avibrant and expanding market opportunity, and fits into the plans to build newLonrho Springs facilities in over 20 countries across Africa. " ENQUIRIES Lonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672831 Collins Stewart EuropeHugh Field +44 (0) 20 7523 8350Jonny Sloan NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays a fundamental role in the development of the African economy. Since 2006, the Company has invested in or acquired control of: • Hotel Cardoso - www.hotelcardoso.co.mz (retained) • Lonrho Mining - www.lonrhomining.com • Luba Freeport - www.lubafreeport.com • Fly540 - www.fly540.com • Norse Air - www.norseair.co.za • Swissta Holdings - www.swissta.com • SA Independent Liner Services • Bytes and Pieces • Celsys Limited - www.celsys.co.zw This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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