South Africa: Heineken Plans New USD 340 million in Cato Ridge

Heineken Beverages is set to make a significant investment in KwaZulu-Natal, South Africa, with plans to construct a new brewery valued at around ZAR 6 billion (approx. USD 340m). Originally, the multinational company had considered a location near the Dube Trade Port, close to King Shaka International Airport on the Dolphin Coast. However, according to information of Sunday World, Heineken has shifted its focus to a more suitable site where the project can commence swiftly, minimizing bureaucratic delays.
 

The new preferred site for the brewery is in Cato Ridge, 50 km north-west of Durban, which is part of an important economic zone that stretches along the N3 highway, a major route that connects Durban to Pietermaritzburg and further inland to Johannesburg. This area is poised for significant development projects in the coming years and meets essential criteria such as water use licenses and environmental impact assessments, which are crucial for a project of this magnitude.

Sanele Shabalala, Stakeholder Relations Manager at Heineken Beverages, confirmed the shift in plans to Sunday World, stating that the final site selection would be announced in September. The capital expenditure for the brewery's first phase is expected to be around ZAR 6 billion (approx. USD 340m).

Heineken's commitment to expanding its footprint in KwaZulu-Natal was reiterated during the 2023 South Africa Investment Conference (inside.beer, 14.4.2023). The planned brewery is expected to provide a significant boost to the local economy and create numerous job opportunities.

The brewery project follows the formation of Heineken Beverages in 2023, which resulted from the merger of Heineken South Africa, Distell, and Namibia Breweries Limited (inside.beer, 9.3.2023). The company, headquartered in Amsterdam, now operates over 165 breweries in 70 countries worldwide and produces popular brands such as Heineken, Savanna, Windhoek Beer, Tafel, Soweto Gold, Miller Genuine Draft, Strongbow, and Nederburg.

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