Published 23 November 2007Lion Nathan Ltd has secured an option over a 16.7ha industrial-zoned site on Ormiston Rd for its new brewery.
Chief executive Rob Murray said the new manufacturing plan it will build there has been estimated to cost $250 million, depending on the final site & design. The company will have a single manufacturing site, better flexibility, agility & quality.
Mr Murray said it would also avoid spending $50 million on the existing Khyber Pass Rd brewery in Newmarket, and the new plant was expected to result in $10-15 million ebitda savings from 2012.
The company has made $48 million from selling its Khyber Pass brewery site ($37.2 ebit) to AMP Capital Investors NZ Ltd in September for $162 million. It got the first $50 million in September and will get the balance on exit to Ormiston Rd ($112 million, net present value $82.3 million).
Earlier story:27 July 2007: Lion sells Khyber Pass brewery site to AMP
Attribution: Company statement, story written by Bob Dey for this website.