South African Pioneer Food Group will spend about R1-billion in the current financial year on expansion projects, it said on Wednesday.
“Capital will be spent earlier than previously estimated, to expand the capacity of the pasta facility to cater for increased demand, as well as the strategic expansion of the broiler business through an acquisition in Gauteng,” Zitulele Combi, chairperson of Pioneer, said in the group annual report.
Pioneer, which makes bread, breakfast cereal and juices, last year agreed to pay R500-million in exchange for having investigations against it related to the unfair competition dropped.
The company had also agreed to a reduction in its gross profit by R160-million over a defined period for a selection of wheaten flour and bread products and increase its capital expenditure by R150-million.
Pioneer also said in December it plans to buy South African wine and spirits maker KWV for R828-million to diversify. — Reuters