The supplier of beverage packaging machinery has installed 400 pieces of equipment in Southern Africa since establishing a presence there 30 years ago through an agent.
As the size of the beverage industry continues to grow in the region, Sidel has decided to develop its own activities there. The formal creation of a subsidiary in South Africa will first be celebrated with the opening of a new office in Johannesburg on October 12 but this will be followed by other investment projects.
Mart Tiismann, Sidel president and CEO said: “Establishing our own local company is a first step in strengthening our local presence for greater responsiveness and stronger support to our local customers.
“We also plan to bring additional resources onboard soon in order to offer more service capabilities and competences.”
The new Southern Africa subsidiary will serve beverage customers in South Africa and neighbouring countries including Namibia, Botswana, Zimbabwe, Zambia, Malawi, Tanzania, Mozambique, Lesotho and Swaziland.
Beverage market growth
Continued growth in the beverage markets in these countries is expected to drive the development of the new company.
“We are confident that economic growth in the future will continue to drive beverage consumption in Southern Africa,” said Tiismann.
According to Euromonitor, 3.5bn litres of beer and 4bn litres of carbonated soft drinks were consumed in South Africa last year. Looking ahead, the market research firm predicts a compound annual growth rate (CAGR) for beer of 5.4 per cent for 2010 to 2014 and 1.6 per cent for CSDs over the same period.