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OVERVIEW

Manufacturing New chemicals plant opens in Special Economic Zone.

SECTOR INSIGHT Textiles and shoes are a Free State speciality.

Deputy Minister of Trade and Industry, Bulelani Magwanishe, at the launch of Kevali Chemicals’ new plant.

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ttractive incentives are on offer to manufacturers at the Maluti-a-Phofung Special Economic Zone (MAP SEZ) which was officially launched in 2017. The 1 000ha facility at Harrismith is strategically located on the N3 highway, which runs between the ports of KwaZulu-Natal and the industrial heartland of Gauteng province. In 2018 Kevali Chemicals became the first beneficiary of the Black Industrialists Scheme (BIS) of the National Department of Trade and Industry (dti). A grant of R35-million allowed the company to acquire machinery and equipment to start a new line of production and manufacturing at a facility in the MAP SEZ. Kevali is the first company in the chemicals, pharmaceuticals and plastics sector to receive support in this programme. The plant, which will manufacture cleaning and disinfecting solutions and water-treatment chemicals, will create 57 direct and 12 indirect jobs. The Industrial Development Corporation (IDC), a development financier, is also supporting the scheme and it has helped workers at the plant become shareholders in the venture. Companies from China, Bulgaria and India have expressed interest in the SEZ proposition. Among the projects in the pipeline are a factory making transformers and one to make medical equipment. Between 2017 and 2019, investments valued at about R550-million will be made into the zone. FREE STATE BUSINESS 2019

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Investments made into infrastructure at the SEZ will result in 250 direct permanent jobs and 420 indirect jobs in 2018/19. The revitalisation of industrial parks at Botshabelo and Phuthaditjhaba has contributed to manufacturing increasing its contribution to provincial gross value add (GVA). The Industrial Park in Botshabelo was relaunched in June 2016. The R60-million project, part of a scheme to revitalise industrial parks in the province, hosts 12 manufacturing companies. A Risk Sharing Funding and Black Industrialist Scheme aims to support five black industrialists in the manufacturing sector. Botshabelo has a manufacturing sector which employs more than 10 000 people in textiles, plastics and other sectors. However, the bulk of the employed population of Botshabelo commute to Bloemfontein. A number of factory buildings and parcels of publicly owned land in Botshabelo and along the N8, which are either not used or under-utilised, are being targeted for development. Phuthaditjhaba is home to several textile operations. Shoemakers like Tirisano Holdings make a varied range of products

Profile for Global Africa Network

Free State Business 2019  

Free State Business is a unique guide to business and investment in the Free State Province of South Africa. The Free State has several inve...

Free State Business 2019  

Free State Business is a unique guide to business and investment in the Free State Province of South Africa. The Free State has several inve...

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