Cypriot beverage maker Keo is awaiting final government approvals to proceed with a €50 million investment in a new distribution and spirits bottling centre in Limassol, one of the largest private industrial projects planned for the district in recent years.

According to Entrepreneurial Limassol, a periodical published by the Limassol Chamber of Commerce and Industry (Evel), the company has been waiting for more than two years for the necessary planning and building permits, despite applications having already been submitted to the relevant authorities.

The planned development will bring together Keo’s principal production, processing and logistics operations in a single state-of-the-art Distribution and Spirits Bottling Centre.

The company has expressed concern over the lengthy licensing process, warning that the delays have increased the overall cost of the investment as construction costs in Limassol continue to rise.

Keo also stressed that the project is expected to have a significant economic and development impact on Cyprus.

According to information obtained by Entrepreneurial Limassol from the Limassol District Local Government Organisation (EOA Limassol), the licensing procedure is now in its final stages.

“Once positive opinions are received from the Department of Environment and the Department of Public Works, the permit will be issued, allowing construction to begin,” the organisation said.

The new facilities will be built in the Archangel Michael area of Polemidia, at a site selected on economic and operational grounds.

The location lies next to the port access road, providing direct access to both the Port of Limassol and the Limassol-Paphos motorway.

Keo intends to begin construction immediately after receiving the required planning and building permits.

The project is expected to take 24 months to complete, while the proposed development will occupy approximately 44,000 square metres.

An additional 9,612 square metres will be set aside as public green space adjacent to the port access road.

The new centre will operate alongside Keo’s winery in Mallia and will include modern office facilities together with the administrative headquarters of the unit.

Despite relocating several operations, Keo has decided to retain its brewery at its existing site between Limassol’s old and new ports.

The brewery has the capacity to produce more than 30,000 hectolitres of beer per month.

The site also holds historical significance for the company, with Keo establishing operations there in 1939 and beginning production of its flagship Keo beer in 1951.

According to the company’s management, the brewery has become a landmark closely associated with both Limassol’s history and Keo’s development.

The company also maintains that brewing is not considered heavy industrial activity and therefore does not create significant disturbance for surrounding areas.

What is more, Keo pointed out that many European cities successfully accommodate breweries within urban environments.

The company further believes that the continuing redevelopment of the area between the Limassol Marina and the Port of Limassol, together with the planned coastal road connection, will significantly increase visitor numbers.

According to the company, these developments further reinforce its decision to keep the brewery at its current location.

For safety reasons, the brewery is currently closed to visitors, unlike in previous years.

However, Keo plans to reopen the facility to visitors in the future through a redesigned layout that will allow safe public access.

The company also indicated that it is not rushing to decide the future use of the valuable waterfront properties that will become available once part of its operations relocate, despite the significant increase in the value of those sites in recent years.