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Red Stripe's $billion investment


Winstom Sill/ Freelance Photographer
Red Stripe's Production Manager, Stephen Spencer, left, explains the computerised bottling process to Industry, Commerce & Technology, Phillip Paulwell, centre, and Clarence Clarke, President of the Jamaica Manufacturers Association, during a plant tour after the official opening of the line.

Barbara Ellington, Features Co-ordinator

On Thursday October 3, Red Stripe commissioned into service its new, state-of-the-art bottling line, MAG5, at its Spanish Town Road plant. The new bottling line is a part of the company's initial $1.6 billion plant modernisation programme, covering the installation of the line, a new filter and Wort Cooler. The total cost of the five-year investment programme is $2.5 billion.

Special guest at the opening was the President of Global Marketing for Diageo, Rob Malcolm who noted that the five-year capital investment "is a clear indication of Diageo's commitment to the continued success of Red Stripe and our desire to continue playing our role as a leader and innovator in Jamaican manufacturing."

For his part, Red Stripe's President John Irving said the initiative also represents an investment in the invaluable human resource that Jamaica has produced. "We have invested $12 million and 16,508 hours in providing world class training for our staff and thereby enhancing the skills of our human resource and developing talents," Mr. Irving said, adding that KHS, the German company that provided equipment and training for the team, expressed confidence in the capabilities of the team.

MAG5 which got its name from an employee of Red Stripe during an in-house naming contest, is capable of producing 18 bottles per second or 66,000 per hour, doubling the capacity of the old line. It is also more efficient and environmentally friendly than the old system.

Mr. Irving said that the next five years would see Red Stripe implementing an aggressive strategic export plan that would have great impact on the business and their employment needs.

Guest speaker, Industry, Commerce and Technology Minister, Phillip Paulwell, said that annual sales for the brewing industry is $5 billion locally and US$17.4 million internationally. "Figures indicate that by 2006, export earnings are expected to increase to US$54 million. The Jamaican Government is committed to continuing the partnership with this to ensure that goes on to be more profitable than it is today."

Mr. Paulwell noted that the days when developing countries like Jamaica could rely on traditional trading partners for special preferential market arrangements for export products are over. "The concept, if not the reality of free trade now rules everything, you either make the adjustments required to face global competition or lose out on any chance of making it."

The minister, in congratulating the company for the achievement, listed the following, among the strategies for meeting World Trade Organisation (WTO) and other international trading commitments without ending our self-development:

Local trade practices must become internationally oriented rather than nationally focused

Improve performance, in the sense of quantitative development and better quality

Continue to accommodate national brand/product marketing, advertising and promotional campaigns, targeted at specialty markets.

Foster a business environment where we can rely on each other's business for growth and development and where the wider world is seen a common target.

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