EASTERN CAPE INDUSTRIAL & BUSINESS NEWS
YOUR LINK TO INDUSTRY THROUGHOUT THE EASTERN CAPE
issn NO: 1996-9708
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Management
Engineering/Technical Dept.
July / August 2014
Inside Jeffreys Bay wind farm inauguration - page 3
Materials Handling, Bulk Handling & Logistics - page 7
Focus on Automotive - page 13 Plastics & Rubber page 16
Water & Effluent Management - page 17 COEGA Industrial Development Zone page 21
Company & Product News - page 23
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R17,10 (VAT incl.)
issue no. 62
Business visa bonus for Eastern Cape’s IDZs
ome Affairs Minister Malusi Gigaba (pictured) has gazetted a list of sectors where the capitalisation requirements for a Business Visa will be reduced or waived, including a number that are major areas of focus for the Coega and East London industrial development zones (IDZs). In terms of a separate notice, Gigaba has set R5 million as the financial or capital contribution that must be invested in an established business or one that must still be
established in respect of a Business Visa and Permanent Residence Permit. The funds must originate from outside South Africa and the capital contribution must be new machinery or equipment. Among the sectors listed by Gigaba after consultation with Trade and Industry Minister Rob Davies is agro-processing, which includes aquaculture and biofuels both of which are areas of focus for the two
IDZs and where they have already secured investment. Another sector where the Eastern Cape has a specific interest is renewable energy that includes onshore wind power - the manufacture of turbines and blades - and solar PV. Significantly an area that is also included and that could benefit the province and specifically Nelson Mandela Bay is the Nuclear Build Programme, which includes joint ventures, consortiums and the establishment of new companies “to grow South Africa’s nuclear manufacturing capacity and nuclear sup-
ply industry to supply into the nuclear build programme”. Also included are automotives and components along the whole value chain and also the business process outsourcing sector which is an area of focus for the Coega IDZ. The ministers have collectively also included the oil and gas sectors that includes the exploration for shale gas as well as offshore oil and gas; maintenance in terms of ship and rig repair and the infrastructure for oil and gas-to-liquid refineries.
Enquiry No: 1
Coega investor construction booms
T
HE Coega Development Corporation is seeing a construction growth with seven companies busy with constructions well underway within the Coega Development Corporation’s Industrial Development Zone. Construction taking place at the IDZ provides job opportunities for residents living in the Nelson Mandela Bay and about 1800 people are benefitting from the constructionrelated jobs. “Construction expansion of existing businesses is a sign of current investors’ business growth and an improving economic climate,” said CDC head of marketing and communication, Dr Ayanda Vilakazi. Companies currently under construction include leading gas suppliers Air Product (R300m investment) and Afrox (R300m); electricity generator Dedisa Peaking Power Plant (R2.2-billion); while cold chain logistics facilitators Vector Logistics investment is valued at (R140million); Digistics expansion (R30million); ID Logistics (R30-million) and UTi Distribution (R30-million).
The slab for the Afrox office building is presently being cast and the aim is to have construction completed during the fourth quarter of this year. Twelve people will be employed once operational. More than a third of the work is completed on Dedisa Peaking Power Plant. On completion the plant will consist of two open-cycle gas turbines able to produce 335MW of electricity, which is roughly half of Nelson Mandela Bay’s power requirement. The establishment of the plant will provide value added assistance to a number of growing industries established in the IDZ, estimated to offer over 1000 permanent employment opportunities as a result of the supply of electricity to those industries. Air Products is firmly on schedule to commission the plant and have gas flowing to customers in the final quarter of 2014. Nine operational jobs and 42 constructions jobs are being created. Vector Logistics started construction in May this year and have created 120 construction jobs and 90
CONSTRUCTION BOOM: Workers at the Dedisa Power Peaking Plant people will be employed once operational. Digistics Digital Logistics has outgrown its current 2 285m² facility in Zone 1 of the Coega IDZ – a space it has occupied for six years – in favour of a larger 4 510m² facility. Construction of the new Digistics warehouse facility started at the end of May this year. There are 120 construction workers benefitting from the project and once completed 30 people will benefit from permanent jobs. ID Logistic will create work for 50 people once operational and during the construction phase 200 people would have benefitted
from jobs created. UTi Distribution currently operates from a 2700m² building but will be moving to a 2800m² building which is currently under construction thus increasing their capacity with a 100m². The new site is expected to be completed closer to the end of this year. Dr Vilakazi added that the CDC’s success as a “leading catalyst for socio-economic growth”, was due to the fact that the CDC not only provides a competitive investment location for investors but this is supported by value-added business services. Enquiry No: 2