Brewer, meat firm revamp

DB and Affco are both in the midst of rebuilding their plants, at a combined cost of $85 million, reports DITA DE BONI.

Two corporates are set to spend $85 million upgrading production facilities in the North Island.

DB Breweries will launch the last phase of a plan to centralise all Auckland activities at its Waitemata brewery for the first time since 1930.

Meat processor Affco will spend $25 million rebuilding its Imlay works in Wanganui.

DB Group, which is 77 per cent owned by Asia Pacific Breweries, said yesterday that it would "immediately" start construction on the last stage of a redevelopment project in Bairds Rd, Manukau City.

Head office, sales and marketing, and brewing functions will be housed on the site by 2002.

The $60 million in spending caps a redevelopment started in 1992, aimed at upgrading the packaging hall and equipment lines to cope with a bigger demand for premium beer, says managing director Brian Blake.

"High-quality packaging is a key component of the marketing mix, particularly premium brands, and we must have the flexibility to deliver a variety of high-capacity runs promptly."

The move's only real effect would be to put DB's 250 Auckland workers on one site.

Mr Blake said the company's Mangatainoka, Greymouth and Timaru breweries would be unaffected by developments in Auckland. They were reviewed yearly.

The Waitemata brewery produces DB's cans for the whole of New Zealand, bottled beer for the North Island and some kegged beer.

Affco's decision follows a review of options for restructuring its lamb slaughter facility in the southern North Island, which meant choosing between Wanganui and Feilding as the main contenders.

Chief executive Ross Townshend said the study identified the need for a plant to service a large catchment covering Taranaki, Hawkes Bay, the King Country, Wanganui, Manawatu and the Wairarapa.

"The Affco board has agreed in principle to rebuild Imlay at a cost of $25 million," he said.

It would provide Affco with top-class slaughtering and cutting facilities and mean big cost savings.

The redevelopment of Imlay follows a $5.2 million investment to develop a lamb plant at Rangiuru in the Bay of Plenty.

The rebuilding will start in late 2002 or early 2003 and the plant will operate throughout the work.

Mr Townshend said specific plans for beef slaughter and processing were still being developed as part of a separate study.