13 Aug 2015

Bolux Milling Group is set for major expansion following a whopping P80 million recapitalisation from Seaboard Botswana Holdings. Bolux Group chief executive officer Mr Christo Ellis explained recently during a tour of the plant by the Minister of Trade and Industry Mr Vincent Seretse.

He said the recapitalisation which follows an acquisition of the group’s minority shares by Seaboard Botswana Holdings will spur the company growth.Mr Ellis added that all the money that was realised from Seaboard Botswana Holdings investment was brought back into the company for investment.

Among other things the company will expand its capacity and grow business over time to seize other market opportunities.

He added that some of the potential opportunities could be in biscuits production, breakfast cereal as well as entering the meat industry.

Further, the proposed company expansion is set to contribute about 200 new jobs to the 437 jobs at the company. He added that the upgrade of the facility will affect their supply to customers adding that huge investments are tedious and take time.

Nonetheless, he added that the company is facing a stiff competition from maize meal millers from South Africa and added that their prices are much cheaper.“Due to the drought, we will have to increase maize meal prices,” he said and added that they are currently exporting their products to Zimbabwe.

The company, he noted, is committed to assist the country to be independent from relying on its neighbours in food security. The group’s corporate affairs manager Mr Nkosi Mwaba however said the milling industry in Botswana produces lesser than what the market expects.

Further, he added that the expansion will ensure that farmers have direct market for the white maize readily available.He regretted that some farmers lack knowledge on what millers want and some end up planting a wrong type of maize.

He said that Bolux allows farmers to sell directly to them but noted that they encouraged selling through Botswana Marketing Board.Bolux Group produces and packages brands A1 Super Maize meal brand; Snow White flour and Polana pasta. ENDS