(From left) Guillaume Couture, Soufflet president for Europe, Middle East and Africa, Gauteng Premier Panyaza Lesufi and Midvaal executive mayor Peter Teixeira at the official groundbreaking ceremony for the new malt facility next to Heineken Beverages’ Sedibeng brewery.
- Soufflet Malt’s new R2-billion malt facility will be operational by mid-2027.
- It will supply malt to Heineken’s operations next door, sourcing all its barley from local farmers.
- The plant is expected to create 55 permanent jobs in Midvaal and support a further 200 to 300 jobs in the agriculture, logistics, and related sectors in SA.
- For more financial news, go to the News24 Business front page.
French malt producer Soufflet Malt’s new R2-billion facility next to Heineken’s Sedibeng Brewery will source barley locally, replacing 4 500 imported containers annually for Heineken’s South African operations.
This development “guarantees a stable and growing market for barley producers, especially in Gauteng… And it is a step in the right direction with positive economic ramifications that extend even beyond our province,” Gauteng Agriculture and Rural Development MEC Vuyiswa Ramokgopa said at the groundbreaking ceremony of the €100 million facility, which is expected to be operational by mid-2027.
When Soufflet Malt announced its plan to invest in a malting facility in SA in March 2025, it said it had entered into a commercial partnership with Heineken Beverages to supply malt.
Soufflet said on Thursday the plant would create 55 permanent jobs in Midvaal and support a further 200 to 300 jobs in the agriculture, logistics, and related sectors in SA.
About 400 jobs will be created during the construction phase of the plant, which would have an annual production capacity of 100 000 tonnes of malt. It is Soufflet’s second plant in Africa, with the other based in Ethiopia.
The plant will support investment and job creation in Gauteng, Western Cape, North West, and Northern Cape.
Ramokgopa said that “new upstream and downstream opportunities” will arise in storage, logistics, seed supply, input distribution and extension services.
“There are opportunities to expand barley production under irrigation,” he said, adding about 75 000 tonnes of barley are already being produced in the interior provinces.
Long-term plan
Guillaume Couture, Soufflet Malt president for Europe, Middle East and Africa, told the briefing that the company had started discussing plans to build closer ties in SA with Heineken about a decade ago. At that time, the country was already a “big destination” for the two companies.
“The core of our strategy, which remains very true today, is to build deep local capabilities leveraging our global expertise,” he said.
The company has 40 malting plants in 20 countries in Europe, Asia, Africa, Australia, and America.
Johan van Zyl, director of supply chain for Heineken Beverages, said a consistent supply of high-quality malt was fundamental to the growth of Heineken’s business in SA and that the plant would provide this through its 100% locally sourced model.
He added:
Can you imagine running and importing a malt supply chain from different parts of the world [amid] all the turmoil that is happening?
Van Zyl said Heineken’s business is growing locally, and the company is “definitely seeing green shoots” in the local economy.
Midvaal executive mayor Peter Teixeira said he was “very excited” about the investment, adding it would not only boost the Midvaal region but was also a vote of confidence in SA overall.
“There are not many other parts of the country that can brag and say we have a R2-billion investment. It is good for the country overall, and this does show other foreign investors that you can invest in South Africa, and it is financially viable for them.”
Gauteng Premier Panyaza Lesufi said Soufflet’s investment was a “huge boost to economic development” and a “demonstration of partnership that if we work together, we get things done”.
Soufflet said the site would be “technologically advanced” and produce 50% fewer emissions than the industry average. This is partly due to the site being located next to the brewery, which will allow malt to be transferred via conveyors.
Soufflet CEO Jorge Solis said the project was a “vote of confidence” in SA’s agricultural sector and would strengthen the country’s brewing value chain.
Heineken Beverages MD Jordi Borrut added that the investment supported South African farmers and would contribute to the country’s long-term economic growth.
Nick Wilson
www.news24.com
