Manufacturing: general

Investment is accelerating.

The 2022 Provincial Investment Conference attracted the highest number of investors ever into the province, and the biggest monetary amount.

Many of the investors who were part of the pledge of a total of R46-billion were in the manufacturing sector, including the German roads surface and road maintenance company, Liesen Bitumen.

The investment of Aqora Lithium Batteries points to a trend that will grow in the years to come, with renewable energy taking an increasingly important position within investment baskets.

Bushveld Energy, a subsidiary of vanadium miner Bushveld Minerals, intends commissioning its Belco factory in East London in 2023. The company says that this will be the largest vanadium battery electrolyte plant in the world, excluding China. The company is targeting eightmillion litres per year within four years from the factory, that was built in partnership with the Industrial Development Corporation (IDC).

Among other manufacturers making investment pledges were Benteler, South African Breweries, Mhlobiso Concrete and Toyota Material Handling. SAB’s Ibhayi Brewery has allocated R510-million for plant expansion.

The provincial government aims for more diversification in manufacturing and is targeting sectors where the province already has a competitive advantage (such as wool and mohair), are labour intensive, will have a broad impact and have low barriers for SMME entry.

A fibre-processing plant to spin wool and mohair fibre into yarn is planned, as is a textile mill to focus on cotton, poly-cotton and acrylic fabric. The latter is planned for the IDZ in East London, which is already home to Da Gama Textiles, whose factory has the capacity to produce 45-million square metres of fabric per annum. Da Gama makes the popular and distinctive shweshwe fabric, using its own unique printing process.

Several cluster development programmes aim to develop specific industries by bringing together expertise and logistical support. A NonAutomotive Manufacturing (NAM) Cluster concentrates on training, supplier development, energy efficiencies and developing new markets. Swedish concern Fagerhult Group has entered the South African market via an acquisition of the factory of Port Elizabeth’s Lighting Innovations, and the two subsidiary companies Arrow Lighting and Beacon Lighting.

Online Resources

Coega Development Corporation: www.coega.co.za

Eastern Cape Development Corporation: www.ecdc.co.za

East London Industrial Development Zone: www.elidz.co.za

Sector Insight

South African Breweries is spending R510-million on expansion.

Montego Pet Nutrition, GraaffReinet’s biggest private employer, has been investing in both expanded capacity and in power generation, with the installation of an array of solar panels. More than 200 staff members work in the Karoo town’s factory.

First National Battery, a Metair Group company, has one factory at Fort Jackson and two factories in East London. Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Party in Port Elizabeth and Gately Township, East London.

Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Port Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. ■