Gauteng Gets a R2 Billion Manufacturing Win: Malting Plant Breaks Ground
- Construction has begun on a state-of-the-art Soufflet Malt facility in Midvaal,Johannesburg, set to produce 100,000 tonnes of locally sourced malt annually
- The project is expected to create 55 permanent jobs and support 200–250 barley farms, boosting South Africa’s agricultural sector
- The facility comes as a bright spot for the economy amid recent job losses at Heineken, Mpact, and Coca-Cola
Source: Getty Images
GAUTENG- Good news is brewing for the South African economy as construction has officially begun on a state-of-the-art malting facility in Midvaal, south of Johannesburg, marking a major win for the local brewing and agricultural sectors.
According to Engineering News, the new plant is being developed by French multinational Soufflet Malt, adjacent to Heineken Beverages Sedibeng Brewery in the Midvaal municipality.
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More on the Soufflet Malt and the facility
Soufflet Malt is one of the world’s largest malt producers, operating 40 malting plants across 20 countries, including the USA, Australia, Africa, Asia, and Europe. The company employs 2,300 people globally and has an annual production capacity of 3.7 million tonnes of malt.
Reports say the facility will produce malt used by breweries, distilleries, and artisanal brewers around the world. Once operational, it is expected to churn out 100,000 tonnes of malt annually, all sourced from locally grown barley to support Heineken South Africa’s brewing operations.The facility is expected to be completed by mid-2027.
What does this mean for the local economy?
It is also reported that beyond production, the project is set to have a significant economic impact,creating 55 permanent jobs and up to 300 indirect roles in logistics, local farming support, and related industries.
Additionally, this project will strengthen the country's agricultural sector and support our local farmers. The facility's demand for barley would help to contribute about R750-million a year to local agricultural GDP, which would support between 200 and 250 farms with expected land under barley cultivation estimated to be about 30 000 ha to 35 000 ha.
This is great news for employment in South Africa especially as news of several business closures and loss of jobs have surfaced in the few past months.
Heineken to cut 6000 jobs globally.
The South African economy has suffered significant losses due to factory closures. News of the upcoming malt facility has been met with enthusiasm, especially following the devastating announcement that Heineken plans to cut 6,000 jobs globally. As a company that employs over 5,000 South Africans, concerns about local job losses were expected.
Mpact retrenches 400 workers.
In more negative news for the economy packaging manufacturer Mpact has issued retrenchment packages to its workers, cutting 400 jobs. The JSE-listed company, spun off from the Mondi Group, announced on 3 February 2026 that it could not compete with cheaper imports, and a stronger rand made local production uncompetitive. The company, which is South Africa's only cartonboard producer, is set to close in March 2026.
Source: Getty Images
Previously, Briefly News reported that Coca-Cola in South Africa announced plans to retrench almost 700 South African employees in 2025. It was reported that the beverage production company was planning on closing its plants in the Eastern Cape and the Free State. The company disclosed that it is responding to changing industry conditions and that it is in consultation with unions and the affected employees during the process, a claim rejected by the Food and Allied Workers Union.
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Source: Briefly News
