Soufflet Malt breaks ground on R2bn Midvaal facility to deepen local brewing, farming value chain

Global maltster Soufflet Malt has broken ground on a €100 million (about R2 billion) malting facility in Midvaal, Gauteng, marking one of the most significant recent investments in South Africa’s brewing and agricultural value chain.

Soufflet Malt operates 40 malting plants across 20 countries and producing about 3.7 million tons of malt annually to serve global brewers, craft producers and distillers.

The new malthouse follows the signing of a commercial partnership in March 2025 between Soufflet Malt and HEINEKEN Beverages to supply malt for HEINEKEN’s South African brewing operations.

Strategically located next to HEINEKEN Beverages’ Sedibeng Brewery near Johannesburg, the facility will have an annual production capacity of about 100 000 tons of malt and, once fully operational, will source 100% of its barley from local farmers.

The Sedibeng Brewery produces several of HEINEKEN’s flagship brands, including Heineken, Amstel Lager, Sol and Windhoek, making the integration of malt production a key step in strengthening local supply chains and reducing reliance on imports.

Construction of the facility by Abbeydale Projects is expected to continue through 2026, with commissioning planned for mid-2027.

Once operational, the project 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.

Soufflet Malt said the Midvaal development will be the most technologically advanced malthouse in South Africa.

Designed with sustainability at its core, the facility will produce around 50% fewer emissions than the industry average through the use of trigeneration technology.

Its proximity to the Sedibeng Brewery will allow malt to be transferred directly via conveyors, significantly reducing transport-related emissions and lowering operating costs.

“This project is a strong vote of confidence in South Africa’s agricultural sector and will strengthen South Africa’s brewing value chain,” said Jorge Solis, CEO of Soufflet Malt.

“By investing in local industrial capacity and working 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.”

A central pillar of the investment is farmer development and inclusive participation.

The facility is underpinned by agronomy programmes aimed at supporting both commercial and emerging farmers through training, mentoring and commercial support. These initiatives are designed to help farmers adopt best-practice agronomy and produce high-quality, premium barley at scale.

Since 2018, Soufflet Malt, together with HEINEKEN Beverages, has worked with commercial and emerging farmers to establish a robust local barley supply.

This long-term preparation is expected to enable the Midvaal facility to source all its barley locally once fully operational, ensuring supply security, quality and consistency.

Through a collaborative partnership involving HEINEKEN Beverages and the Industrial Development Corporation (IDC), emerging farmers will also gain access to funding for agricultural equipment.

This support combines grant funding with interest-free finance, helping to lower barriers to entry and enable sustainable participation in South Africa’s barley supply chain.

By prioritising local ingredients and producing malt alongside its brewery, HEINEKEN aims to cut unnecessary imports and transport emissions while supporting inclusive agricultural development.

“This malthouse is a clear demonstration of our Brew a Better 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,” said HEINEKEN Beverages managing director Jordi Borrut

“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, Soufflet Malt president for Europe, the Middle East and Africa, Guillaume Couture, said the project reflected long-term partnerships with customers, farmers and local stakeholders, and underscored the company’s confidence in South Africa’s agricultural and brewing sectors.

“This facility is a tangible expression of our confidence in South Africa’s agricultural and brewing sectors and our commitment to their continued development,” Couture said.

IDC divisional executive for industry planning and development Rian Coetzee said the investment would strengthen agricultural and industrial value chains while enabling black emerging farmers to participate meaningfully in high-value supply chains.

BUSINESS REPORT