Czech Republic: Plzensky Prazdroj plans large-scale reconstruction

The main production facility of brewery Plzensky Prazdroj in Plzen will undergo a large-scale reconstruction in the next few years, Prague Monitor Daily communicated on August 3. Prazdroj CEO Mike Short told CTK that investments in the business year ending in March 2006 will exceed last year's CZK 1.6 billion.

Prazdroj CEO Mike Short assumed his post in February 2005. He said he sees Prazdroj and its key product, Pilsner Urquell beer, as the flagship of SABMiller, the world's No. 2 brewer.

The company will invest over CZK 1 billion in a new bottling plant. It will also add ten new tanks for fermentation to the existing 150, and extend its brewing facility. "By the end of the year, a plan enabling the full use of the 58-hectare compound will be drawn up and will be taken into account in the reconstruction," spokesman Alexej Bechtin said.

Last year, Prazdroj sold 9.7 million hectolitres of beer, up 200,000 hectolitres against the previous year. It should produce slightly under 10 million hectolitres this year, according to Short. Last year's exports totaled 1.7 million hectolitres, a growth of 13 percent from 2003, and the increase should be even bigger this year. Licenced production in Slovakia, Poland, and Russia surpassed one million hectolitres last year. This year, Prazdroj also launched licenced production in Hungary. Production under licence should increase by 300,000 hectolitres this year.

The biggest growth in exports is expected in the USA and South Africa. Germany will remain Prazdroj's key export market. Domestic sale will stay at 8 million hectolitres.

Prazdroj CEO Mike Short said the company does not plan a price hike on the domestic market this year.

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