Gauteng Secures R2bn Manufacturing Project

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06-02-2026
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Soufflet Malt broke ground today on the construction of its €100 million (R2 billion) malting facility in Midvaal, Gauteng, marking a major investment in South Africa’s brewing and agricultural value chain. The construction followsthe signing of a commercial partnership in March 2025 between Soufflet Malt and HEINEKEN Beverages to supply the malt for its South African brewing operations.

Located next to HEINEKEN Beverage’s Sedibeng Brewery near Johannesburg, the new malting facility will have an annual production capacity of approximately 100,000 tonnes of malt and will source 100% of its barley supply from local growers once fully operational. The brewery is responsible for production of Heineken®, Amstel Lager, Sol and Windhoek.

Local economic impact

Construction of the facility by Abbeydale Projects is expected to continue through 2026, with commissioning planned for mid-2027. The facility is expected to create 55 permanent jobs, support hundreds of farmers, and generate between 200 and 300 indirect jobs across agriculture, logistics and related services.

Sustainability

The new facility will be the most technologically advanced malthouse in South Africa and will produce 50% fewer emissions than the industry average using trigeneration. Its location next to the brewery will enable malt to betransferred via conveyors, delivering lower-emissions operations and decreasing costs. This project reflects Soufflet Malt’s MALTiply 2030 strategy to pioneer sustainable malt solutions, leveraging by advanced technologies and low-carbon design.

“This project is a strong vote of confidence in South Africa’s agricultural sector and will strengthen South Africa’s brewingvalue chain,” said Jorge Solis, Chief Executive Officer of Soufflet Malt. “By investing in local industrial capacity andworking closely with farmers, we are building a resilient, sustainable locally integrated malt supply chain that will support long-term agricultural and industrial development in the region”.

Farmer development and inclusive participation

The investment is underpinned by agronomy programmes supporting both commercial and emerging farmers. Through training, mentoring and commercial support, Soufflet Malt is helping South African farmers adopt best-practice agronomy to produce high-quality, premium barley at scale.

Since 2018, Soufflet Malt together with HEINEKEN Beverages, has worked with commercial and emerging farmers inSouth Africa to build a robust local barley supply. This long-term preparation will enable the malting facility to source 100% of its barley locally once fully operational, ensuring supply security, quality and consistency.

Through this collaborative partnership with HEINEKEN Beverages and the Industrial Development Corporation (IDC), emerging farmers will also have access to funding for agricultural equipment. The support includes a combination of grant funding and interest-free finance, helping to lower barriers to entry and enable sustainable participation in South Africa’s barley supply chain.

Aligned to HEINEKEN’s global Brew a Better World 2030 strategy, the investment reflects the brewer’s long-term commitment to growing its business in South Africa while strengthening local supply chains, supporting inclusive agricultural development and reducing its environmental footprint. Central to this approach is sustainable sourcing –prioritising local ingredients, reducing unnecessary imports and emissions, and investing in partnerships that build long-term resilience across the value chain and the wider economy.

Jordi Borrut, Managing Director of HEINEKEN Beverages, said: “This malthouse is a clear demonstration of our Brew aBetter World ambitions in action, in South Africa. By sourcing barley locally and producing malt alongside our brewery, we reduce imports, lower transport emissions and build a more resilient, lower-carbon supply chain. Crucially, this investment supports South African farmers, strengthens local agriculture and contributes to long-term economic growth, ensuring our success is firmly rooted in the communities and country we operate in.”

Speaking at the groundbreaking ceremony, Guillaume Couture, President for Europe, the Middle East and Africa(EMEA) at Soufflet Malt, added: “Our investment in Midvaal stems from long-term partnerships with customers, farmersand local stakeholders. This facility is a tangible expression of our confidence in South Africa’s agricultural and brewing sectors and our commitment to their continued development.”

On behalf of the IDC, Rian Coetzee, Divisional Executive for Industry Planning and Development, said: “This investment marks a major step forward in strengthening South Africa’s agricultural and industrial value chains. Through our support to emerging farmers and our partnership with Soufflet Malt and HEINEKEN Beverages, we are ensuring that local barley production becomes a sustainable, inclusive and competitive sector. The IDC’s contribution enables black emerging farmers to participate meaningfully in high-value supply chains, while creating jobs and deepening rural development in communities across the North West. This is exactly the kind of long-term, catalytic impact our mandate is designed to deliver.”