Eastern Cape Business 2023-24

OVERVIEW
Manufacturing: general
Investment is accelerating.
The 2022 Provincial Investment Conference attracted the
highest number of investors ever into the province, and the
biggest monetary amount.
Many of the investors who were part of the pledge of a total
of R46-billion were in the manufacturing sector, including the German
roads surface and road maintenance company, Liesen Bitumen.
The investment of Aqora Lithium Batteries points to a trend that will
grow in the years to come, with renewable energy taking an increasingly
important position within investment baskets.
Bushveld Energy, a subsidiary of vanadium miner Bushveld Minerals,
intends commissioning its Belco factory in East London in 2023. The
company says that this will be the largest vanadium battery electrolyte
plant in the world, excluding China. The company is targeting eightmillion
litres per year within four years from the factory, that was built in
partnership with the Industrial Development Corporation (IDC).
Among other manufacturers making investment pledges were
Benteler, South African Breweries, Mhlobiso Concrete and Toyota
Material Handling. SAB’s Ibhayi Brewery has allocated R510-million for
plant expansion.
The provincial government aims for more diversification in
manufacturing and is targeting sectors where the province already has a
competitive advantage (such as wool and mohair), are labour intensive,
will have a broad impact and have low barriers for SMME entry.
A fibre-processing plant to spin wool and mohair fibre into yarn
is planned, as is a textile mill to focus on cotton, poly-cotton and
acrylic fabric. The latter is planned for the IDZ in East London, which
is already home to Da Gama Textiles, whose factory has the capacity
to produce 45-million square metres of fabric per annum. Da Gama
makes the popular and distinctive shweshwe fabric, using its own
unique printing process.
Several cluster development programmes aim to develop specific
industries by bringing together expertise and logistical support. A Non-
Automotive Manufacturing (NAM) Cluster concentrates on training,
supplier development, energy efficiencies and developing new markets.
Swedish concern Fagerhult Group has entered the South African market
via an acquisition of the factory of Port Elizabeth’s Lighting Innovations,
and the two subsidiary companies Arrow Lighting and Beacon Lighting.
ONLINE RESOURCES
Coega Development Corporation: www.coega.co.za
Eastern Cape Development Corporation: www.ecdc.co.za
East London Industrial Development Zone: www.elidz.co.za
SECTOR INSIGHT
South African Breweries is
spending R510-million
on expansion.
Liesen Bitumen, Fort Jackson,
Mdantsane.
Montego Pet Nutrition, Graaff-
Reinet’s biggest private employer,
has been investing in both
expanded capacity and in power
generation, with the installation
of an array of solar panels. More
than 200 staff members work in
the Karoo town’s factory.
First National Battery, a Metair
Group company, has one factory
at Fort Jackson and two factories
in East London. Mpact runs two
corrugated packaging convertor
facilities in the Eastern Cape, at
Deal Party in Port Elizabeth and
Gately Township, East London.
Bodene, a subsidiary of
Fresenius Kabi, makes intravenous
medicine in Port Elizabeth. East
London hosts Johnson & Johnson’s
finance, operations and research
and development divisions. ■
EASTERN CAPE BUSINESS 2023/24
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