Business

Superior to set up $10 million wheat mill

KELLY NJOMBO – Lusaka
SUPERIOR Milling Company Limited has set aside about US$20 million to expand its operations for various projects in the country.
Company managing director Peter Cottan said the milling company has signed a lease with the Lusaka South Multi-facility Economic Zone (LS-MFEZ) through a public private partnership (PPP) where it will set up a wheat mill and a stockfeed mill at a cost of US$10 million.
“We are [also] expanding the current milling capacity at our Chinika mill after an investment of about US$10 million which will be commissioned next year on the February 15, and this is expected to double our production capacity to about 94,000 metric tonnes from about 47,000 metric tonnes annually,” he said.
In an interview in Lusaka recently, Mr Cottan said the company has found an equity partner that will invest about US$5 million, while the other US$5 million will be financed through external loan funding.
“In our phase two expansion, we have signed a lease with LS-MFEZ with Government which is a PPP. We have managed to put together finance for a wheat mill for flour and stockfeed mill. Our total expansion investment for phase 2 under the LS-MFEZ is about US$10 million and we have gone to the capital markets to find an equity investor of which we found to put in a 50 percent of that and other 50 will be financed through an external loan,” he said.
Mr Cottan is optimistic that the planned LS-MFEZ plant will be commissioned in March next year.
He, however, said with expected increase in the milling capacity, the company has also identified the Democratic Republic of Congo (DRC) market where it will start exporting maize meal.
He said the company has done a comprehensive market research in the DRC because it realised that the Zambian market is saturated, and that it had to look across borders to find new markets.


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