Consol announced 1 March that it is to build a new R1,9BN glass factory in Nigel, boosting annual output by 25%. The new factory would increase the group's annual production by 220 000/t to over 1M/tons said MD Mike Arnold. While current production capacity exceeds demand, Arnold said the expansion would ensure there was sufficient production capacity to meet foreseeable market growth expectations. The new glass factory would be designed initially to be a 2 furnace operation, each with output of 400/tpd & would be built in 2 phases. The first phase, costing R1,3BN would consist of factory infrastructure development, production service equipment & the first of 2 furnaces, which would be commissioned by Sept/11. The installation of phase 2, costing R600M, would be dependent & driven by market growth/demand. As all the infrastructure & services would already be in place, the lead time for installation & commissioning of the second furnace would be less than 9m. In addition to the Nigel expansion, production capacity in the Western Cape would be increased by a further 10%, or 30 000 t/y. This expansion would take place during the Consol Bellville No 4 furnace rebuild in late 2011 or early 2012, increasing the manufacturer's production capacity of glass containers to 1,1M/tpa. "In addition to this already sizeable investment, our future capital expenditure plans also include the provision of a new cullet processing plant at our Wadeville and Bellville sites. This will ensure that we are in a position to maximise glass recycling in South Africa," Arnold concluded.
