Daikon Investments (Pty) Ltd has confirmed its recent acquisition of 55.2%, the controlling share, of Namibia Plastics & Packaging Distributors (Pty) Ltd from Johan Struwig, co-founder and chief executive officer (CEO). The business is a leading manufacturer, importer, reseller and distributor of flexible plastics for industrial purposes and for the packaging of wet and dry food products, amongst other applications.
The closing for the transfer of shares held in Namibia Plastics to Daikon was completed on 30 January 2023, following the Namibian Competition Commission’s approval of the merger on 29 September 2022. The 44.8% co-shareholder in Namibia Plastics is Spitz Capital - a Regulation 13 Unlisted Investment Vehicle with the Government Institutions Pension Fund (GIPF) as principal investor. Spitz Capital is managed by Königstein Capital, a Namibian investment manager established in 2009 by Albie Basson.
Daikon director Andrea Barry welcomed the merger, saying “We are excited to finalise this transaction, which is a reflection of our desire to strengthen the industrial base of the country through export-orientated growth.
Together with our co-shareholder, Spitz Capital, we have injected further capital of N$80 million ahead of the closure of the deal to double production capacity and enable the business to increase its presence across the region, moving from a 60% export ratio to 80% over the coming years. The future of the business holds not only further expansion, but also the realisation of our ambition to create a circular economy for plastics.”
The company has already doubled its output with the arrival of a second extrusion line from Europe in early November 2022.
“For the past eight years, our purpose and corporate mission has been to become the market leader everywhere we serve. This acquisition brings us one step closer to achieving this goal, as it opens the doors to several opportunities in both the domestic and international arena. In addition to the second production line, further capex expansions have been approved by the shareholders, which include the establishment of an in-house recycling plant to recycle post-production waste. This material can be re-introduced into the manufacturing cycle, reducing the use of ‘virgin plastic material’, and allowing the same amount of plastic to be used multiple times in various applications. The benefit for the environment is that the amount of plastic produced annually is reduced.” Struwig stated.
He went on to say that although Windhoek is not experiencing power supply problems like South African cities, and the facility can consistently deliver on high-quality output, it is also in the process of implementing a solar system for maximising the city’s sunny conditions.
Namibia Plastics is known for its corporate culture of empowering its people to grow, develop and succeed to enhance the lives of its collective team (and valued customers).
“Everybody matters, and is included in the journey. Therefore, I am also pleased to announce that more than 10% of the proceeds of the sale of my shareholding in the company is in the process of being re-distributed to the people of Namibia Plastics to recognise their commitment to owning, supporting and driving the company’s strategies, and ensuring its future success. We will continue nurturing our slogan, ‘Beyond Success to Significance’, which is built on the pursuit of finding value, meaning and purpose in serving and making a difference in the lives of others”, he added.