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Pioneer embarks on R1bn expansion plan

Johannesburg - Pioneer Food Group [JSE:PFG] will spend about R1bn in the current financial year on expansion projects, it said on Wednesday.

"Capital will be spent earlier than previously estimated, to expand the capacity of the pasta facility to cater for increased demand, as well as the strategic expansion of the broiler business through an acquisition in Gauteng," Pioneer chairperson Zitulele Combi said in the group's annual report.

Pioneer, which makes bread, breakfast cereal and juices, last year agreed to pay R500m in exchange for the dropping of a probe against it into allegations of unfair competition.

The company also agreed to a reduction in its gross profit by R160m over a defined period for a selection of wheaten flour and bread products, and to increase its capital expenditure by R150m.

Pioneer said in December it plans to buy South African wine and spirits maker KWV for R828m to diversify.
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