Kerry Group opens new €38m plant in South Africa as shares fall 4%          

Investors have been closely watching the company to see how it copes with the strains of an extraordinary period of increases in global commodity costs and consumer prices

Edmond Scanlon, chief executive at Kerry Group.

Kerry Group said it has officially opened Africa's "largest and most advanced" ingredient-flavours plant by opening its €38m facility in South Africa.

The Natal plant will service customers right across the continent, the foods giant said, hailing its sustainable credentials.       

Like they have been doing with most international food companies, investors have been closely watching Kerry to see how it copes with the strains of an extraordinary period of increases in global commodity costs and consumer prices. 

The shares which fell 4% in the latest session are now down 15% since the start of the year, to value the Irish multinational on stock markets at just under €17bn.         

“The opening of the facility in Hammarsdale is a significant step forward in helping to realise our vision of creating a world of sustainable nutrition," Kerry Group chief executive Edmond Scanlon said.   

Our suite of world-leading technologies combined with our expertise and now this state-of-the-art manufacturing facility ensures that we can continue to work with our customers to produce great tasting, nutritious products that are respectful of our planet.

The company said that the South African facility would service customers in east, west, and central Africa as it works "with food and beverage companies to create products that will be enjoyed across the continent”. 

It is also expanding a development centre in Nairobi in Kenya "to further support customers in east Africa and the development of sustainable food processing for the continent".