Treasury Wine Estates has revealed its plans to invest in expanding its Wolf Blass Bilyara winery site in South Australia.
In a statement to the ASX, TWE said it plans to spend up to $215m over the next two years to support the continued growth of its Australian Luxury portfolio and increase wine making capacity, drive production efficiency and increase wine storage facilities at the Barossa Valley site.
The investment includes an additional production line, processing infrastructure and the construction of additional barrel storage facilities,” the statement said.
“Total capital investment is expected to be between $150m and $180m and will be incurred over the course of FY20 and FY21.
“In addition, one off costs of approximately $35m are expected to be incurred in FY20.”
TWE also said the investment is part of its continuing “premiumisation strategy”, which also includes buying production and vineyard assets in the Bordeaux region of France, which will allow the company to expand its French country-of-origin portfolio.
Last week TWE posted its FY19 financial results, delivering 25 per cent EBITS growth, 17 per cent growth in Net Sales Revenue and a 16 per cent increase in statutory net profit.