Nampak Group would invest 1.6 billion rand ($179 million) in two businesses that produce bottles and cans, strengthening its position in the beverage-can and glass packaging sectors, Africa’s biggest packaging group said at the weekend.

Business Day reported that the first investment would be nearly 1 billion rand ($112 million) in a third furnace at its Germiston-based glass bottle business. This is aimed at improving overall manufacturing efficiencies, enabling the company to supply a broader range of bottles. Commissioning of this furnace is expected by the end of this year.

South Africa business daily also reported that the second investment of nearly 600 million rand ($67 million) would see an addition of an aluminium beverage can capacity and convert existing lines from tin-plate to aluminium production. Aluminium cans are fully recyclable, Nampak said at its annual general meeting (AGM) in Johannesburg.

Sales of the additional production have already been secured through long-term supply contracts with key customers. Graham Hayward, Nampak’s investor relations and property manager, however, declined to identify these contracts.

According to Business Day, Hayward said the new lines would be funded through existing resources, or debt. Nampak had a low level of gearing and a strong balance sheet, the newspapers reported.

“These two projects strengthen our position in the beverage-can and glass-packaging sectors in South Africa and show our commitment to growing the South African economy,” Business  Day quoted Nampak chairman, Tito Mboweni, as saying.