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Keo’s €25m Limassol factory clears environmental review

Cyprus Mail · 2026-09-01

AI SUMMARY

• What happened: Keo's €25 million beverage factory in Kato Polemidia has passed its environmental screening, allowing the project to move closer to construction. • Why it matters: The factory is expected to create around 50 jobs during construction and will significantly boost local beverage production, including juices and wines, while adhering to environmental regulations. • What to watch next: The company must secure additional permits before construction begins, which is anticipated to take approximately 24 months.

Full impact study not required for Kato Polemidia production and distribution complex Keo’s planned €25 million beverage factory in Kato Polemidia has cleared its environmental screening, bringing the Limassol project a step closer to construction. The environmental authority said it had no objection to the development, subject to a series of conditions, and decided that a full environmental assessment was not required. In its reasoned finding, dated August 27, the authority said the anticipated effects were not considered environmentally significant and could be managed through the proposed mitigation measures. The decision followed an assessment of the project’s information report, a site visit and consultation with the Limassol district local government organisation. However, the environmental finding does not amount to final planning approval. Construction is expected to begin once the remaining permits have been secured and is estimated to take around 24 months. The building phase is expected to employ up to 50 people, including subcontractors. The project will be built on a 62,335-square-metre plot in the Archangelos Michail area of Kato Polemidia, within the Ba4-BE economic activities zone. Around 44,000 square metres will be occupied by the development, while a further 9,612 square metres will be used as green space next to the vertical road leading to Limassol port. Access will be provided from Neas Genias Street. The main building will have three levels. A 9,810-square-metre basement will be used for storage and wine ageing, while the 22,840-square-metre ground floor will house production, processing, bottling and packaging operations. Offices will occupy a further 992 square metres on the first floor. The plans also provide for internal roads and 80 parking spaces for staff and lorries. Once operational, the complex will prepare and package juices, blend and filter wines and spirits, carry out cooling and pasteurisation, distil zivania and ouzo, and age wines, Commandaria and eau de vie. It will also serve as a storage and distribution centre for beer, imported beverages and finished products. Its maximum estimated output is 4,975 tonnes a year, including 2,550 tonnes of juices in Tetra Pak packaging, 165 tonnes of canned juices and 250 tonnes of squashes and juices in PET bottles. Production will also include 870 tonnes of bottled wines and spirits and 1,140 tonnes of wines in bag-in-box and Tetra Pak formats. The new facility will work alongside Keo’s winery in Mallia, receiving between 1,000 and 2,500 tonnes of wine annually for final processing, ageing and bottling. Wine and grape marc will also be transported from Mallia for zivania production, although grapes will not be received or processed at the Kato Polemidia site. In addition, the factory will use imported raw materials, including bulk molasses alcohol, eau de vie, bulk wines and clarified concentrated grape must for the production of wines and spirits. The design includes an underground wastewater treatment plant with a daily capacity of 50 cubic metres. It will process wastewater from the cleaning of tanks, machinery, pipes and production floors, together with water from the regeneration of the facility’s deioniser. After secondary treatment and filtration through activated carbon, the treated wastewater may be discharged into the sewerage network, provided Keo receives approval from the Limassol district authority and complies with the limits for industrial wastewater. The company must also secure a separate discharge permit before the treatment plant begins operating. In addition, the environmental conditions require monitoring of dissolved oxygen and water toxicity, along with the submission of hydraulic and hydrological studies before construction of the stormwater network. Meanwhile, a 600kW photovoltaic system will be installed on the factory roof. According to the project’s information report, the panels are expected to cover around 40 per cent of the facility’s estimated annual electricity needs of 2,500 MWh and reduce its indirect greenhouse gas emissions by a similar proportion. Vinasse and grape marc, the main organic by-products of distillation and winemaking, will be sent to licensed waste facilities for energy recovery. Sludge from the wastewater treatment plant will also be handled by licensed operators, while hazardous waste from maintenance and laboratory work must be stored separately in sealed containers. The authority also imposed conditions covering dust, noise, traffic, fire safety and landscaping. Noisy construction work must be limited to normal working hours and avoided on weekends and public holidays, while native, drought-resistant trees and shrubs must be planted around the site. The nearest home is around 70 metres from the project, while the 16th Primary School of Zakaki and Ayia Varvara Gymnasium are 560 metres and 645 metres away respectively. The site does not fall within a Natura 2000 area. It is located about 1.63 kilometres north of the Akrotiri protection area and 7.9 kilometres southeast of the Limnatis Valley protected area. Keo unveiled plans for the new complex in May, when the project was still undergoing environmental review.

Source: Cyprus Mail
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