Wine Industry Report

The Cork Supply Group is investing over €2.8 million ($3.55 million U.S. dollars) to construct a new cork production facility and upgrade an existing cork preparatory facility in Portugal.

“Cork Supply is dedicated to providing the highest quality products, and investing in new cork processing facilities in Portugal is in keeping with this strategic goal,” said James Herwatt, CEO of Cork Supply USA. “Cork continues to be the preferred seal for premium wines, and by making this investment in quality, we’ll ensure that we continue to provide the wine industry with the quality natural corks they demand.”
Herwatt points out that in building new facilities the Group is discarding many old traditions that they’ve discovered through research have not always been beneficial in terms of enhancing quality. “This gives us the opportunity to build quality in from the ground up,” he said.

The new facility in northern Portugal, expected to be completed in March of 2007, will be 155,000 sq. ft. in area. The Cork Supply Group is investing €1.1 million ($1.4 million U.S. dollars) in infrastructure and €500,000 ($634,000 U.S. dollars) in new machinery for the production facility which includes additional Innocork processing equipment to handle increasing worldwide demand for the new product. The Cork Supply Group is investing an additional €1.3 million ($1.65 million U.S. dollars) for upgrades and new equipment for a preparatory facility in the Montijo region of Portugal.

The influx of capital will transform the current facility in Montijo into a new, modern plant with additional covered storage area and state-of-the-art equipment. The addition of a new warehouse to keep the stock of bales and an enlarged seasoning park will bring the square footage of the facility up from 130,000 sq. ft. to 195,000 sq. ft. “The seasoning park will be constructed using the best industry practices for air circulation and drainage,” said Herwatt. Once completed, the Montijo facility will feature a new stainless steel boiler and water treatment system. The project is expected to take a little over a year to complete.

Since 1981, CSU has provided wineries with the highest level of quality corks available and is a member of the Cork Supply Group, with operations in Europe, North and South America, Australia and South Africa. Besides owning state-of-the-art manufacturing facilities in Portugal, the Group also has five forest managers in Portugal who work directly with cork forest growers to ensure that quality is maintained literally from the forest to the bottle. In recent years, Cork Supply has expanded its quality umbrella to encompass Nomacorc™ synthetic closures, Rivercap™ premium tin capsules, SAVin™ screwcaps and other products all backed by the same quality of service, expertise and leadership Cork Supply has built its reputation on.