Manufacturing

A steel smelter is under construction.

Anational programme to revitalise industrial parks, led by the National Department of Trade, Industry and Competition (dtic), is paying off about 45km east of Bloemfontein.

Among the biggest new investors in the Botshabelo Industrial Park is Hangda Trading which has started erecting a R200-million steel smelter which will employ more than 1 500 people. A dtic official and a Hangda executive are pictured on a site inspection. At the end of the first phase of revitalisation, 25 investors had invested R201-million and 1 360 jobs have been created. A Digital Hub in the park will provide training to small and medium enterprises focusing on ICT products.

Further north, the strategically located Maluti-A-Phofung Special Economic Zone (MAP SEZ) has attracted R1-billion from investors. Kevali Chemicals became the first beneficiary of the dtic’s Black Industrialists Scheme (BIS). A grant of R35-million allowed the company to acquire machinery and equipment to start a new line of manufacturing in the MAP SEZ.

Business hubs in Ficksburg and Koffiefontein are designed to support SMMEs. The Contractor Development Programme has signed contracts with 71 small businesses to do road maintenance in the province.

A 172ha business park in Sasolburg which incubates black industrialists is a joint venture between the dtic and Sasol. There are five buildings on the site, training is provided, and companies have access to Sasol’s diverse supply chains.

Sasolburg in the northern Free State is a key asset in South Africa’s chemicals industry. Sasol has the biggest presence but companies such as Omnia and AECI are other major companies which give the Free State the lead in this sector which relies on advanced technology.

Manufacturing makes up 9% of Free State gross domestic product, and this comprises 4% of South Africa’s total. The Free State Regional Industrialisation Policy is under review to ensure integration of infrastructure, bulk service provision, industrial sites and export and tax incentives to attract investment.

The existing manufacturing sector covers chemicals, agroprocessing, textiles, carpets, engineering, packaging, furniture and jewellery. About 20% of the Free State’s manufacturing sites are devoted to food and beverages, with soft drink giant CocaCola Fortune operating a large bottling plant in Mangaung. Landzicht Wine Cellar distributes 2.4-million litres of wine every year from Jacobsdal.

Harrismith is home to Nouwens Carpets and Boxmore Plastics. Boxmore Packaging’s new PET beer bottles are the first PET bottles specifically designed for beer on the SA market. Empire Gloves makes industrial gloves. Kroonstad-based Octa Engineering makes specialised rail carriages for the mining sector. In Bloemfontein, Transnet Engineering manufactures new wagons for the Transnet group, including iron ore and cement wagons and fuel tankers. ■

ONLINE RESOURCES

Chemical and Allied Industries’ Association: www.caia.co.za Free State Development Corporation: www.fdc.co.za South African Textile Federation: www.texfed.co.za SECTOR INSIGHT The Malutia-A-Phofung Special Economic Zone is attracting investment.

Credit: dtic