27 February 2008
27th February 2008
("Lonrho" or the "Company")
LONRHO SIGNS AGREEMENT TO DEVELOP A 'NATURAL SPRING' WATER BOTTLING FACILITY IN
LUBUMBASHI, DEMOCRATIC REPUBLIC OF CONGO
Lonrho plc (AIM: LONR) today announces that Lonrho Springs BVI, its wholly owned
subsidiary, has signed an agreement whereby Lonrho Springs RDC Sprl will build a
new water bottling factory in Lubumbashi in the Democratic Republic of Congo to
meet the growing demand for quality bottled water being created by the economic
growth in the Katanga region.
Lonrho Springs RDC Sprl is a new company, which will be owned 51% as to Lonrho
Springs BVI and 49% to Classic Sprl, a local business.
The plant will be developed on a natural spring, 25km from Lubumbashi and easily
accessible by road. It will be the only natural spring water produced in the
region. The new plant will produce 1.3 million ltrs per month and will cost US$
5.3 million to develop. Funding for the project will be US$ 1.3 million raised
from local banks and each of the equity partners in the project will invest
Lubumbashi is experiencing significant economic growth as a result of the
foreign direct investment of an estimated US$ 12 billion into the region for the
development of copper and cobalt mines.
Lonrho Springs BVI is the holding company for Lonrho's water interests. Lonrho
Springs is operating or developing water bottling plants in Kinshasa in the DRC;
Luanda in Angola; Johannesburg in South Africa and Maputo in Mozambique.
Lubumbashi in the DRC is the latest project in the roll out of Lonrho Springs
water bottling plants across the continent.
The natural spring water will be marketed in conjunction with TP Mazembe, (Tout
Puissant Mazembe) the highly successful Lubumbashi football team, in an effort
to promote fitness, sport and well being.
David Lenigas, Executive Chairman of Lonrho stated:
"I am delighted to announce this agreement to develop another Lonrho Springs
water bottling plant in Africa. Safe and clean drinking water, at economical and
affordable prices, is a key consideration as Africa continues to enjoy
significant economic growth.
Lubumbashi is an exciting market; the stability in the region has generated
consistent and sustained economic improvement and it is clear that Lubumbashi is
developing into a centre of trade and commerce driven by its immense natural
resources. This in turn generates an ideal opportunity for the development of
new projects such as this Lonrho Springs water bottling facility. This is an
exciting addition to the Lonrho portfolio and helps to significantly strengthen
the growth prospects of Lonrho Springs."
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
Emma Priestley, Executive Director +44 (0)7867 785 177
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743 6375
+44 (0) 7841 672 831
Collins Stewart Europe : NOMAD to Lonrho
Hugh Field / Jonny Sloan +44 (0) 20 7523 8350
NOTES TO EDITORS
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services and natural
resources. The Company has over 20,000 shareholders and substantial
institutional backing to support its mandate to build a profitable business that
plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
* Hotel Cardoso - www.hotelcardoso.co.mz
* Lonrho Mining - www.lonrhomining.com
* Luba Freeport - www.lubafreeport.com
* Fly540 - www.fly540.com
* Norse Air - www.norseair.co.za
* Swissta Holdings - www.swissta.com
* SA Independent Liner Services - www.saliners.com
* Bytes and Pieces
* Kwikbuild - www.kwikbuild.co.za
This information is provided by RNS
The company news service from the London Stock Exchange