RNS Number : 8480W
  Lonrho PLC
  17 June 2008
   

    17th   June 2008


    LONRHO PLC
    ("Lonrho" or the "Company")

    Lonrho to develop an agri-processing and cold store facility and a 100 hectare agriculture project at Lilongwe, Malawi
    
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it has signed an
agreement with the Government of Malawi to develop an international standard cold store and agri-processing and packing facility at Kamuzu
International Airport in Lilongwe, in conjunction with developing a 100 hectare agricultural project adjacent to the airport.

    Following the agreement with Airport Developments Limited ( ADL ), a 100% owned subsidiary of the Malawian Government, Lonrho will
develop a quality control process; agri-processing facility; packing house; and cold store for fruit, vegetables and flowers. The facility
will provide the necessary infrastructure for the Malawian agricultural sector to commence international exports of agricultural produce and
flowers.

    It is envisaged that formal agriculture will supply 30 - 40% of the processing plant input, and that 60 - 70% will be sourced from local
indigenous small farmers. Lonrho will provide agronomist advice to aid local farmers to increase yields and quality of production. 

    Lonrho will pay a nominal ground rent for the 100 hectare farm and the site for the new facility. The new facility will be located with
direct access to the airport apron for ease of handling and will be located at the existing logistics terminal at Kamuzu International
Airport. ADL will receive a royalty payment in relation to the turnover of the new business.

    Geoffrey White, Lonrho's Chief Executive Officer commented:
    
"The agricultural sector in Malawi has grown considerably in recent years and the level of production by local farmers clearly provides the
opportunity for export. The development of an international standard agri-processing facility in Lilongwe in conjunction with a large
agricultural project will provide benefits to the wider agricultural sector in Malawi bringing better economic returns for indigenous
farmers and through advice and training to local farmers improve quality and yields. "  


    LONRHO ENQUIRIES

 Lonrho Plc                                +44 (0)20 7016 5105
 David Lenigas, Executive Chairman         +44 (0)7881 825 378
 Geoffrey White, Chief Executive Officer   +44 (0)7717 307 308
 Emma de Borchgrave, Executive Director    +44 (0)7867 785 177
                                            
 Pelham PR                                  
 Charles Vivian                            +44 (0) 20 7743 6672
                                           +44 (0) 7977 297903
 James MacFarlane                          +44 (0) 20 7743 6375
                                           +44 (0) 7841 672831
                                            
 Collins Stewart Europe : NOMAD to Lonrho   
 Hugh Field                                +44 (0) 20 7523 8350


    NOTES TO EDITORS

    About LONRHO:

    Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded
on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure,
transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional
backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy. 

    Since 2006, the Company has invested in or acquired control of: 

    Hotel Cardoso - www.hotelcardoso.co.mz  (retained)
    Lonrho Mining - www.lonrhomining.com 
    Luba Freeport - www.lubafreeport.com 
    Fly540 - www.fly540.com 
    Swissta Holdings - www.swissta.com 
    SA Independent Liner Services - www.saliners.com 
    Bytes and Pieces www.bytespieces.com 
    Kwikbuild - www.e-kwikbuild.co.za 
    LonZim - www.lonzim.co.uk 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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