Nampak, a South African packaging company, has announced plans to invest ZAR1.6bn ($180m) in two of its core beverage packaging businesses.
According to the company, both the businesses produce containers for the growing beverage market.
In the first project, Nampak will invest almost ZAR1bn ($112m) for an additional furnace at its glass bottle business at Roodekop, Germiston, South Africa.
The business, which already runs two furnaces, expects a third furnace to improve overall manufacturing efficiencies and enable it to supply a broader range of bottles.
The company contracted sales of the additional production to key customers.
Nampak will invest almost ZAR600m ($68m) in the second project at the Springs plant, to increase aluminium beverage can capacity and convert existing lines to aluminium from tinplate.
A new high speed line is also being installed for commissioning in May 2013, which will be followed by the conversion of the other existing lines.
The company has secured sales through long-term supply contracts with major customers.
Nampak chairman Tito Mboweni said the company expects further performance improvement in 2013 in South Africa where it generates some 70% of its revenue, despite the challenging economic conditions.
"These two projects strengthen our position in the beverage can and glass packaging sectors in South Africa and show our commitment to growing the South African economy," Mboweni said.
Nampak noted that there had been mixed demand for packaged products during financial year ended December 2012, and hot weather in most parts of the region during the festive season resulted in good demand for beverage packaging.