OVERVIEW
Manufacturing Furniture is in the spotlight.
W
ith timber being one of Mpumalanga’s primary products, any initiative to boost the furniture sector must be welcomed by manufacturers. A first national Furniture Sector Forum has been held, where government incentives and ideas about how to reduce the cost of expensive machinery through co-ownership and partnerships were shared. The forum was co-hosted by the South African Furniture Initiative (SAFI), Proudly South African, PG Bison and the Department of Trade, Industry and Competition (dtic). The dtic’s Agro Processing Support Scheme (APSS) includes furniture manufacture as a core sector for future growth and support. Other efforts to get government departments to buy locally were explained. Average employment per manufacturer is 13 people per facility. Furntech White River is a part of the Seda Technology Programme of the Small Enterprise Development Agency (Seda). Among the goals of the programme are to develop business and production skills through skills development and the demonstration of technology. A key objective of the provincial government’s Mpumalanga Economic Growth and Development Path (MEGDP) is to expand the industrial base of the provincial economy. To do this, policy-makers are focusing on beneficiation, agro-processing and value-chain development. From steel to chemicals, petroleum and stainless steel to paper and fruit juice, Mpumalanga makes a wide variety of products. There is a distinct geographical divide. Fuel, petroleum and chemical production occurs in the southern Highveld region clustered around Sasol’s plants. The Sasol chemicals and liquid fluids complex at Secunda is a vital component of Mpumalanga’s manufacturing sector. The company has two propylene manufacturing plants and recently completed two major investments aimed at improving flows and expanding production. The northern Highveld area, including Middleburg and eMalahleni (Witbank), is home to ferro alloy, steel and stainless-steel concerns. In the Lowveld, agricultural and forestry products are processed
ONLINE RESOURCES Highveld Industrial Park: www.highveldindustrialpark.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za South African Iron and Steel Institute: www.saisi.co.za
MPUMALANGA BUSINESS 2021/22
44
SECTOR INSIGHT The province wants to expand its industrial base.
Credit: Furntech White River/Seda
while Sappi’s giant mill is close to the company’s forests south-west of the provincial capital, Mbombela. TSB Sugar runs two large mills and produces fruit juices through a subsidiary company. Nelspruit is the centre of the province’s foodprocessing cluster. Approximately 70% of jobs in the manufacturing sector are in food and forestry. Steelmaking is a key strategic industry for South Africa, representing 1.5% of the country’s GDP and accounting for about 190 000 jobs. According to the South African Iron and Steel Institute (SAISI), the South African steel industry value chain multiplies the value of local iron ore by a factor of four. The country produces about six-million tons annually, but costs are high and domestic demand is low. Middelburg-based Columbus Stainless is South Africa’s only p ro du cer o f s t ainl e ss- s te e l products. A significant portion of sales are domestic and export volumes are flexible, depending on local demand. ■
