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