Drinks group C&C is to invest €200 million to double its cider manufacturing capacity at its Clonmel plant.
The company said it expected key elements of the capacity increase to become operational next spring.
The investment would free cash flow/EBITDA (earnings before interest, tax, depreciation and amortisation) to a 30-40 per cent range in each of 2006/07 and 2007/08 fiscal years.
"This is the group's largest ever capital investment programme and is designed to resolve our current supply difiiculties and provide an ample level of spare capacity going forward," Mr
Brendan McGuinness, head of the cider division, said in a statement released today.
C&C said the expansion, at its Clonmel cider plant, reflected the rapid growth of its Magners cider brand in Britain, which enjoyed a 250 per cent jump in sales in the first half of the year, according to the company's results released earlier this month.