GAUTENG – French multinational malt producer Soufflet Malt is set to invest €100 million in a new malting factory at Heineken’s Sedibeng brewery in Gauteng, marking a significant boost for South Africa’s barley industry.
The facility, which is Soufflet’s second operation in Africa, is expected to be operational by mid-2027 and will support over 200 local barley growers while creating 55 full-time jobs.
Strengthening Local Supply Chains
The partnership between Soufflet and Heineken, formalized during a ceremony on March 7, aims to reduce reliance on barley imports. The new plant will replace the 4,500 containers of barley that Heineken currently imports regularly.
Heineken South Africa Managing Director Jordi Borrut emphasized that the on-site malt production would significantly shorten the company’s supply chain for its Amstel, Windhoek, and Heineken beers.
“With a malt factory right next door, barley deliveries will move via conveyor instead of the 25 daily truckloads we currently receive,” Borrut said.
Supporting Local Barley Farmers
Soufflet has committed to sourcing barley locally and has been running a farmer development programme since 2014. The company will procure 95% of its barley from commercial farmers and 5% from small-scale growers.
The initiative also provides an alternative market for farmers who struggle to access buyers, particularly in North West and the Southern Cape, with expansion plans to support growers in Northern Cape, Limpopo, Gauteng, and Mpumalanga.
Production Capacity & Expansion Plans
According to Soufflet South Africa MD Jeremy Antier, construction of the new malting factory will begin before mid-2024. The facility will have an initial production capacity of 100,000 tonnes per year, with the potential to expand to 125,000 tonnes if demand grows.
Soufflet will retain ownership and operation of the malting facility, selling malt to Heineken under a purchase agreement.
Sustainability & Land Development
A 10-hectare site has been allocated for the malting plant, with an additional 20 hectares designated for a solar farm, which both companies are developing to enhance sustainability.
Midvaal Mayor Peter Teixeira welcomed the investment, noting that the Midvaal region has 350 hectares of land available for further agricultural projects. He also pledged faster land-use approvals to encourage more investment.
The move underscores South Africa’s push towards localisation in barley production, reducing imports, and strengthening agricultural supply chains, while also creating jobs and boosting rural economies.