Astral set to invest in plant expansion
The company plans to expand production after a fourfold increase in operating profit
Astral Foods, the JSE’s big bird of the poultry sector, is committed to R1.3bn in capital expenditure over the next three years. Speaking after the release on Monday of interim results that showed bumper profits, Astral CEO Chris Schutte said the company was determined to invest significantly in boosting production and operational efficiencies that would boost Astral’s overall capacity by 20%-25%. For the Festive chicken plant in Olifantsfontein R850m was earmarked for a first-phase production expansion in which an additional 400,000 birds will be produced per week, he said. A second-phase expansion plan would cost R190m and add 400,000 more birds per week, Schutte said. Astral also envisaged a R200m investment in increasing capacity at the Mountain Valley plant in KwaZulu-Natal to boost production by 200,000 birds per week. Schutte discounted the chances of Astral scouting for acquisitions to boost capacity. “If we regard ourselves as the lowest-cost poultry producer, why should we...
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