2019/20 EDITION
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA PROVINCE
OVERVIEW
Oil and gas Gas exploration and gas conversion are growing trends.
OVERVIEW
Manufacturing Highveld steel works lives again as an industrial park.
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grow the provincial economy of sectors. Beneficiation of timber biomass are two obvious areas in a sector that already boasts a
Mpumalanga’s Gross Domestic makes up 12% of South Africa’s oducts sector contributes about ises logging, saw-milling, wood acture. Pulp and paper are the r, wood chips and wattle extract. rtage of sawn timber with very in recent times due to concerns mber in South Africa is used in
te and topography for forests. of the industry, but commercial outh along the Swaziland border. d, with 4% of that being natural der in total hectares under forest
York Timbers celebrated its centenary in 2016. nternational chemicals and energy company Sasol has several large • An Agriculture and plants in Mpumalanga and plays a major role in the economy of the province. The company’s most recent upgrade of two polypropylene Forestry Technology Park manufacturing plants at Secunda has been completed at a cost of is planned.
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R1.1-billion. This follows shortly after a stabilisation scheme valued at R1.3-billion and is part of the global giant’s ongoing investment in its facilities. More than 900 jobs were created for the duration of the upgrading Development and Tourism project, which took place while production continued at the plant. (DEDET) will spend R3.9-million Polypropylene is used in packaging, automotive components and in the 2017/18 year on textiles statu-and demand is growing every year. Mpumalanga, Sasol’s assets are Sasol Mining, Secunda Synfuels tory compliance for this parkInand Operations, other parks, which will include an Secunda Chemicals Operations and Sasol Energy. Products manufactured at the Secunda complex include petroincubation element for SMEs. leum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas byThe Mpumalanga Economic products include oxygen and acetylene, liquefied petroleum gas (LPG), andPath hydrogen and nitrogen. The primary feedstock for synthetic-fuel Growth and Development production is coal, and the plant is located in the heart of Mpumalanga’s (MEGDP) intends to expand the coalfield region.
industrial base of the provincial economy, with a focus on benefiMPUMALANGA BUSINESS 2017/18 ciation, agri-processing and value
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reative thinking kicked in when Highveld Steel’s troubles reached the tipping point in 2015. Aside from the business rescue process, which has allowed some production to restart, there is some irony in the that fact that the 1 000ha property has been re-purposed as a multi-purpose site for industry and commerce. Called the Highveld Industrial Park, this project has had the effect of promoting a diversity of manufacturing enterprises, something which has been a priority for economic planners for many years. Stockpiles of coal and vanadium are being sold off, but two iron plants and a steel plant offer fully-equipped metallurgical and steelSasol produced amaking record facilities, supported by environmental monitoring services and metallurgical volume of synfuel in 2017. and chemical laboratories. The private rail siding gives the park good connections and the fact • Tosaco Energy is searchthat Sasol can supply methane-rich natural gas and that two gas proing for gas at three sites. ducers (Air Liquide and African Oxygen) have plants in the park makes for an advantageous setting for industrial enterprise. The Eskom grid supplies 350mVA power supply directly. The park is near eMalahleni, next to the N4 highway and close to the N12 highway. The Sasol Synfuels refinery, In early 2018, the park had 21 tenants and many enquiries. Tenants which forms part of theinclude Sasolacomtraining centre funded by the Construction Sector Education Training Authority (CETA) and a mining equipment refurbishment plex at Secunda, is theand only comcompany. An agricultural college is planned. mercial coal-to-liquid fuel plant in The structural mill of Evraz Highveld Steel in Witbank was officially the world, and forms relaunched a vital part in June 2017 after ArcelorMittal South Africa signed a contract supply blooms and slabs for the mill to make into heavy of South Africa’s oil and gas tosec-
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tor. In July 2017 Sasol announced MPUMALANGA that the synfuel plant produced a BUSINESS 2018/19 record annual output. Sasol is spending about R12-billion on expanding the
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SECTOR INSIGHT
Most jobs in manufacturing are in food and timber.
structural steel. Evraz Highveld went into business rescue in 2015. The contract is for two years with an option to renew for another year. Alternately, ArcelorMittal may buy the mill after the two years. The presence of Ferrometals means that Mpumalanga is still an important place for metals and machinery manufacturing, but the turbulence in the steel sector has reminded everyone of the need to diversify. The chemicals and liquid fluids complex of Sasol at Secunda is a vital component of the province of Mpumalanga’s manufacturing sector. The
