Industrial group Famous Brands has entered into a joint venture with Coega Dairy, a dairy manufacturing business in Port Elizabeth, South Africa. The joint venture will manufacture cheese products for Famous Brands.
Famous Brands will hold 51% stake in the joint venture, which will be known as Famous Brands Cheese Manufacturing, with Coega Dairy holding the rest. The joint venture's first-year annualized turnover is forecast to be nearly ZAR180m ($20.26m).
As a part of the joint venture, a cheese manufacturing plant will be set up next to Coega Dairy's existing dairy facility, which primarily produces UHT long-life milk and butter.
In addition, new equipment will be imported from Italy for the plant and will be financed by the joint-venture partners in direct proportion to their shareholdings.
The plant will produce mozzarella, cheese slices and cheese spread for Debonairs Pizza, which is owned by Famous Brands. The supply will expand over time to Famous Brands' other businesses.
