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Prima Smallgoods: big aspirations Credit: Prima Smallgoods
Lae-based food manufacturer Prima Smallgoods has recently completed a 40 million kina (US$15.82 million) upgrade to its manufacturing operations. The company’s General Manager, Adrian Chow, says the investment was made to take advantage of Papua New Guinea’s expected long-term economic development, with the manufacturer anticipating a surge in domestic demand for nonstaple and value-added food options. ‘As disposable income increases, we expect people to have a greater demand for processed meat products,’ he says. That’s not to say that things aren’t already going strong for the fast-growing company, which has a 40-year history in Papua New Guinea. Its current customer base includes the catering providers for Papua New Guinea’s major resources projects, as well as a range of wholesalers and supermarkets, which supply Prima’s lowerpriced saveloys and sausages to the mass market. The newly-upgraded manufacturing facility, opened by Prime Minister Peter O’Neill in September 2013, includes new processing equipment that can deliver consistently high-quality products and allows for comprehensive data collection. . Chow says the new plant also creates a much safer and pleasant working environment for the company’s 230 staff. ‘Our objective was to build a modern manufacturing facility of a scale and standard not seen in Papua New Guinea before,’ he says. ‘The design and equipment allow our staff to perform their tasks more efficiently and safely.’ The resulting improvements will enable Prima to provide a highquality local alternative to imported smallgoods.
Brewer’s rise Based on increased demand for beer and other beverages, S P Brewery has involved in a major multi-year capital investment program for its plants in both Lae and Port Moresby. General Manager Stan Joyce expects the upgrades to be completed by June 2014. ‘If you don’t replace equipment every now and again, it becomes inefficient. So there are efficiency gains, there’s a greater diversity of products and of packaging configurations,’ says Stan Joyce.
New products, higher quality Another Lae-based company, industrial and household supplies manufacturer K K Kingston, has ‘returned to our core business’ in 2013, according to General Manager, Michael Kingston. A key part of this is a program of restructuring and rationalisation. ‘Our Speedway project continues to progress. This is a project to consolidate all our Lae operations onto one new green-field site on the outskirts of Lae,’ he says. Kingston is also expanding its range of products. ‘We have introduced a number of new and updated products in 2013. This includes a new paper towel product, a new toilet paper product and a new-formula laundry detergent powder to upgrade our current product,’ explains Kingston. 14
Prima Smallgood’s upgraded plant in Lae.
‘We believe that our new facility’s standards are better than some of the processing facilities in Australia. So, our customers can no longer use quality as an excuse to buy from overseas suppliers,’ Chow says. The benefits of such a major private investment are also expected to flow through to the local piggeries and farms that form part of Prima’s supply chain. Prima’s investment may also enable a move into exports. ‘At the moment, we’re not exporting because we are trying to concentrate on the Papua New Guinea market, but there is a possibility in the future with this new plant,’ Chow says, noting that the Solomon Islands offers a natural fit for Prima’s products.
‘We expect to bring six to 10 new products to market in 2014.’ Chicken producer Tablebirds is another company embracing higher quality, and is currently certifying its processing plant to meet international standards. ‘It means we can be able to sell our products to local markets including the mines, gas, oil and extracting industries, as well as obtain opportunities if they present themselves for export,’ says Dr Keith Galgal, Mainland Holdings Limited’s Corporate Affairs and Research Manager.