Lonrho PLC - Lonrho Springs Update
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RNS Number:7240J Lonrho PLC 12 December 2007 12th December 2007 LONRHO PLC (Lonrho or the 'Company') Lonrho expands it's African water bottling division and announces a US$ 9 million project to serve the booming Angolan market Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it's water division, Lonrho Springs, has signed an agreement to develop a major new water bottling plant in Luanda, Angola. Following an extensive market review and analysis of the projected future bottled water requirements in the country, Lonrho is establishing a new Angolan subsidiary, Lonrho Springs Angola Lda, ( LOSA ) that will develop the project and operate the business. The new factory and buildings of 1,500m2 will be developed close to Caxito, in the Bengo state, 35km from Luanda, where land has already been secured for the project, and ground water tests completed. The new production plant will be ideally situated to service the existing market demands of Luanda and close to the proposed development of New Luanda city. The new factory will be built to ISO standards and the 'Swissta' international standard for producing bottled water and will provide a quality and safe product for the Angolan market, utilising the highest standards of international water processing technology to ensure consistent and reliable production. The mineral water will be extracted from bore holes, and will be enriched with minerals to provide a product with the optimum levels of safety, health and taste. In addition to mineral water, the plant will also provide a range of flavoured and vitamin enriched waters. Two distribution bases of 1,000m2 each will be developed for the business in the key market areas in Luanda. These will aid distribution to overcome the difficult logistics currently experienced in the market. The distribution centres will be replenished with product overnight, thus avoiding the traffic congestion in Luanda The plant is designed to produce 4.5 million litres of water per month, distributed in a range of sizes from 0.33ltr through to 20ltr units. The project is expected to cost US$ 9 million to complete and plans are to be producing water for the market by the end of 2008. The project will be funded as to 40% equity funding and 60% debt funding from Angolan commercial banks. LOSA is a strategic investment for Angola. Each of the founding investors are participating in the company by way of either land or cash investments, and the equity participation is as follows : Holding Investor 55% Lonrho Springs BVI The Lonrho Plc wholly owned subsidiary developing water projects throughout Africa 15% GEF Management Corporation A Washington based investment fund 15% Angolan Business Corporation An Angolan investment company 15% R2J Lda An Angolan investment company David Lenigas, Lonrho's Executive Chairman commented: "This is a significant step for the continuing roll out of Lonrho Springs as a water bottler across the African Continent. The combination of the latest purification and bottling technology combined with modern plant and equipment will ensure that the water is of the highest possible quality. Angola is a vibrant and expanding market opportunity, and fits into the plans to build new Lonrho Springs facilities in over 20 countries across Africa. " ENQUIRIES Lonrho Plc +44 (0)20 7016 5105 David Lenigas, Executive Chairman +44 (0)7881 825 378 Geoffrey White, Chief Executive Officer +44 (0)7717 307 308 Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PR Charles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903 James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672831 Collins Stewart Europe Hugh Field +44 (0) 20 7523 8350 Jonny Sloan NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy. Since 2006, the Company has invested in or acquired control of: • Hotel Cardoso - www.hotelcardoso.co.mz (retained) • Lonrho Mining - www.lonrhomining.com • Luba Freeport - www.lubafreeport.com • Fly540 - www.fly540.com • Norse Air - www.norseair.co.za • Swissta Holdings - www.swissta.com • SA Independent Liner Services • Bytes and Pieces • Celsys Limited - www.celsys.co.zw This information is provided by RNS The company news service from the London Stock Exchange END AGRUUOKRBKRUARA
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