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Opportunity Issue 95

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GLOBAL TRADE<br />

More than beer<br />

and chocolates<br />

Flanders, the northern Dutch-speaking region of Belgium, has a lot to offer<br />

South African companies that want to enter the European market.<br />

Since the Middle Ages, Flanders was a textile<br />

region, making tapestries and clothing. The<br />

textile sector diversified into flooring products<br />

from carpets to wooden flooring, technical textiles<br />

and artificial grass. Flanders is now expanding<br />

in new areas of expertise such as smart textiles and new<br />

materials, where for example, microchips are integrated<br />

in the textile fabrics.<br />

In the golden Sixties, Flanders was successful in<br />

attracting multinational chemical companies to the port of<br />

Antwerp. The port is an ideal gateway to the international<br />

markets and the European hinterland. The different plants<br />

are interconnected with pipelines and connected with<br />

other ports (such as Zeebrugge and Amsterdam) making it<br />

a very efficient production location. Sasol of South Africa is<br />

present in Flanders with a distribution facility in Antwerp.<br />

Another wave of investments in the Sixties came from<br />

the automotive sector. Today Volvo (XC40 model) and<br />

Audi (E-Tron model) in the Brussels region have flexible<br />

production plants. Flanders also attracts automotive<br />

suppliers as well as truck and coach/bus manufacturers.<br />

Volvo trucks has the largest manufacturing plant in Ghent.<br />

New investments also stem from the pharmaceutical<br />

sector. The pharmaceutical development started in<br />

1<strong>95</strong>3 with Dr Paul Janssen, who founded Janssen<br />

Pharmaceuticals in Beerse. His challenge was to merge<br />

pharmacology and chemistry knowledge: 80 medicines<br />

were discovered in different fields, including Opiod<br />

(Fentanyl – pain medication), Mikonazole (Daktarin<br />

– antifungal medication) and Loperamide (Imodium –<br />

diarrhea medication) to name a few.<br />

Green biotech was introduced to Flanders by the<br />

company PGS (Plant Genetic Systems) in 1992. The<br />

founders, Prof Mantagu and Dr Jeff Schell, were the first<br />

to develop plants resistant to insects, pests and herbicides<br />

by genetically engineering the plants. Many of the corn,<br />

cotton, yellow maize and soybeans currently available in<br />

South Africa are GM (genetically modified) crops.<br />

Medical biotechnology (red biotech) has developed<br />

rapidly in Flanders, mostly at the five universities and<br />

four academic hospitals for clinical trials. More than 140<br />

companies have been formed over the years.<br />

In the ICT space, Flanders is one of the worldwide pioneers<br />

in nanotechnology (chip technology) thanks to the<br />

InterUniversity Micro Electronics Center (IMEC), linked to<br />

the oldest university of Europe: KU Leuven. IMEC expanded<br />

its expertise in nanotechnology and chip technology<br />

to application domains such as healthcare, smart cities,<br />

mobility and manufacturing, logistics and energy.<br />

Flanders is now on the forefront of high-tech research and<br />

the digital economy. More than 120 companies have spun<br />

off since IMEC was established in 1986.<br />

The food-processing sector is well-established: the<br />

beverage sector boasts 224 breweries, 1 000 types<br />

of beers and the largest brewing company, ABInbev.<br />

Chocolate production is the highest in Europe, but the<br />

region also excels in the production of frozen vegetables,<br />

fries and bakery products.<br />

Flanders is strategically located in<br />

the middle of Europe, making it an ideal<br />

location for an European Distribution Centre<br />

(EDC). More than 250 companies (including<br />

Nike, Bose, Black & Decker, Volvo, Mazda,<br />

Scania, Ikea, Ingram Micro, Greenspan and<br />

Chiquita) selected Flanders as an EDC.<br />

South African companies should consider<br />

Flanders as an R&D location or distribution<br />

hub for a variety of sectors. Flanders excels<br />

in developing the “Triple Helix’’ (company: education:<br />

government). Building your presence in Europe reduces<br />

your dependence on the rand, your company becomes<br />

part of the various ecosystems and you can tap into<br />

qualified personnel and a broad range of incentives.<br />

www.flandersinvestmentandtrade.com<br />

___ __<br />

Luc Fabry<br />

Trade and Investment<br />

Commissioner,<br />

Flanders Investment<br />

& Trade<br />

___ __<br />

IMEC has 2 clean<br />

rooms and is at<br />

the forefront of<br />

chip design and the<br />

digital economy.<br />

www.opportunityonline.co.za | 17

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