FOCUS Maluti-A-Phofung
FOCUS Maluti-A-Phofung SEZ investment opportunities Maluti-A-Phofung Special Economi c Zone (SEZ) has been established in terms of the Special Economic Zones Act, Act No. 16 of 2014. The programme is intended to deepen industrial development and improve manufacturing competitiveness in the Maluti-A- Phofung Municipality. Located in Harrismith and Tshiame in the Eastern Free State, MAP SEZ is strategically located on the N3 national road, halfway between Johannesburg and Durban. MAP SEZ offers in total up to 1 000 hectares of land for industrial development. Since Durban port is the busiest in the southern hemisphere, this therefore means that N3 carries majority of the traffic to different locations in South Africa and the neighbouring countries such as Lesotho and Swaziland. MAP SEZ constitutes the Free State leg of the massive Durban-Free State-Gauteng logistics and industrial corridor that is intended to strengthen the logistics and transport corridor between South Africa’s main industrial hubs to: • Improve access to Durban’s export/import facilities. • Integrate Free State Industrial Strategy activities into the corridor. • Build a new port in Durban. • Expand an aerotropolis around OR Tambo International Airport. SEZ Project Pipeline There are already 18 manufacturing companies (ranging from pharmaceutical to automobile companies) that have signed letters of intent to locate in the MAP SEZ. Some of the sectors targeted for establishment within the MAP SEZ are as follows: • Pharmaceuticals. • Medical devices. • Logistics and distribution. • Agro-processing. • Food processing. • Trade facilitation. • Rail-based container terminal (Transnet Freight Rail). • Automotive cross docking facilities. • Logistics and supply chain management. • Information & Communi cation Technology. • Logistics. Benefits Benefits that will be derived from locating within MAP SEZ includes: • 15% Corporate Tax, national is 28%. • Building Allowance. • Employment Incentive. • Customs Controlled Area. • 12i Tax Allowance. MAP SEZ Milestones • MAP SEZ was launched by President Zuma on 25 April 2016 and is open for business. • Maluti-A-Phofung SEZ operator permit granted by Minister of Trade & Industry after cabinet approval. • Perimeter fencing has been completed. • Bulk infrastructure roll-out is in process. • Marketing and promotion to build a robust IDZ project pipeline is in process. To discuss these opportunities, contact Sipho MG Tshabalala, Marketing & Communications Manager Tel: +27 51 4000 804 | Cell: +27 78 076 8676 | Email: Sipho@mapsez.co.za | Website: www.mapsez.co.za FREE STATE BUSINESS 2018 18
FOCUS FOOD PROCESSING PARK The building of a world-class, integrated food processing park to include food processing, warehousing, cold storage and manufacturing facilities to enhance production efficiencies. Location MAP SEZ Food Processing precinct. Milestones • Concept developed. • Business plan completed. • Marketing the opportunity to prospective investors. Investment Required Investment estimated at R750-million. MEDICAL EQUIPMENT AND DEVICES MANUFACTURING The FDC has signed an investment agreement with two leading Chinese companies (in the medical devices and electronic equipment value chain) to establish a medical devices and medical apparatus and instrumentation manufacturing plant in the newly designated Maluti- A-Phofung SEZ. Location Maluti-A- Phofung SEZ. Milestones • Investment agreement signed. • South African subsidiary of the Chinese company (Medipro) has been registered. • Negotiations to fast-track investment are in process. • The company has CE certification. Investment Required Investment estimated at R600-million. FRANKFORT PAPER MILLS The establishment of a Kraft paper factory that will predominantly use waste container board paper and virgin pulp to produce Kraft liner, linerboard, fluting and semi-extensible sack Kraft. Production capacity is about 180 000 tonnes per annum. Concept The mill will use both virgin (20%) and recycled pulp (80%) as raw material in its production process with the aim of capturing small and medium corrugators. Pulp to be used is unbleached and manufactured by suppliers using the Kraft process. The Kraft process produces strong unbleached papers that can be used for bags and boxes. Location Frankfort, Free State. Milestones • Feasibility phase. • Project designs completed. Project Requirements • A technology partner and investor that is a player in the wood and paper value chain is required to partner with the IDC and local paper convertors to establish and operate Frankfort Paper Mill SA. • Project partners will be responsible for bulk take-off. Investment Required Investment estimated at R1.4-billion. To discuss this opportunity, contact Lizeka Matshekga, Head: Forestry & Wood Products Business Unit, Industrial Development Corporation Tel: +27 11 269 3779, Email: lizekam@idc.co.za Email: invest@fdc.co.za To discuss the above opportunities, contact Sipho MG Tshabalala, Marketing & Communications Manager Tel: +27 51 4000 804 | Cell: +27 78 076 8676 Email: Sipho@mapsez.co.za 19 FREE STATE BUSINESS 2018
