Farsons unveils Lm14m investment

Simonds Farsons Cisk yesterday announced a major investment totalling Lm14 million in three capital projects, namely a new brew house, a new soft drinks packaging hall and a new distribution centre.

Construction works have already started on the new Lm5.6 million soft drinks packaging hall. This will be completed by 2007.

Work on the new distribution centre will begin shortly and will be completed by 2007.

The work on the new brew house is expected to begin in 2009 and will be completed a year later.

The details were given at a press conference at the Farsons Brewery, in Mriehel in the presence of Prime Minister Lawrence Gonzi, Investments Minister Austin Gatt, Farsons chairman Bryan Gera and senior company officials, who toured the premises.

Farsons Group chief executive officer Louis Farrugia said: "We want to continue improving the quality of our product in view of the complete liberalisation of the soft drinks market in 2008. Farsons has always been committed to ensuring that it is equipped with the most modern plant in order for it to be able to offer the best quality products efficiently".

The projects will be using land that has been acquired by Farsons over the years. The company will release other property to part finance these projects.

Farsons is now a diversified group with a turnover nearing Lm27 million, 56 per cent of which comes from the sale of beers, soft drinks, water and juices produced in Malta. The remaining turnover is generated from other activities including the sale of wines, spirits, beers and food imported by subsidiary companies.

Mr Farrugia said the three projects entail a significant investment in new technology that demands new skills from Farsons employees. Over the next four years some 85 employees will reach retirement age.

"As a result, the company will further restructure its operations to meet the new requirements demanded by these projects. Farsons will be embarking on the necessary training programme in collaboration with the unions and employ new recruits," he said.

Mr Farrugia said that since May 1, 2004, sales of Simonds Farsons Cisk products had dropped by just two per cent despite fierce competition from imported products.

The Prime Minister expressed satisfaction at the decision made by a leading Maltese company to make such a large investment. "The government is determined to encourage industry to make these kinds of investments. It is with high quality products that the country can secure competitiveness," Dr Gonzi said.

"Farsons has played a leading role in the story of Malta's manufacturing industry since its inception. The decision to make such a huge investment shows the company believes in the potential of the Maltese economy."