From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:

French multinational malt producer Soufflet Malt is investing €100-million in a new malting factory on the site of beer brewer Heineken’s Sedibeng brewery, in Gauteng. The factory marks Soufflet’s second operation in Africa and will start operating in mid-2027. Marleny Arnoldi visited the site.

Marleny Arnoldi:

The partnership between Soufflet and Heineken will effectively replace the 4 500 containers of barley that Heineken imports on a regular basis, as well as support more than 200 local barley growers.

Soufflet started with a farmer development programme in 2014 already, in its commitment to source barley locally from commercial and small-scale farmers.

Not only does this partnership strengthen localisation or barley and malt in South Africa but also provides an alternative market for farmers that may otherwise struggle to access markets.

Soufflet is working with farmers in the North West and Southern Cape areas, but plan to support more farmers in the Northern Cape, Limpopo, Gauteng and Mpumalanga to further strengthen its barley supply base.

Soufflet plans to initially produce 100 000 t/y of malt on site, which it will sell to Heineken through a purchase agreement while retaining ownership and operation of the malting facility.

A 10 ha area has been designated for the malting facility, as well as an additional 20 ha for solar farm development planned by both companies, respectively.

Soufflet Malt aims to employ between 55 and 60 people across office, production and silo functions.

Heineken local sourcing director for Africa and the Middle East Paul Stanger explains the importance of local sourcing for the group.

Heineken local sourcing director for Africa and the Middle East Paul Stanger…

Marleny Arnoldi:

For Heineken, the on-site malt availability will shorten the supply chain of what is the company’s main input into its Amstel, Windhoek and Heineken beers. The investment will also have positive impacts on the regional economy. Heineken MD Jordi Borrut tells us more.

Heineken MD Jordi Borrut…

Sashnee Moodley:

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy. Don’t forget to listen to the audio version of our Engineering News daily email newsletter.