Gauteng Business 2018-19 edition

OVERVIEW Automotive and

OVERVIEW Automotive and components Investment in plant and training is on the rise. SECTOR INSIGHTS BMW’s new training centre will teach advanced computer skills and robot programming. BMW South Africa has spent about three years investing R6-billion in its Rosslyn plant to prepare for the manufacture of the new BMW X3 model. This includes a R73-million training facility which will have the capacity to train 300 apprentices in the intricacies of robot programming and other computer skills. Nissan is another big automotive manufacturer with a plant at Rosslyn, north-west of Pretoria. The NP200 pick-up (bakkie) and the NP300 are built at the plant. Ford announced in 2017 that it would put R3-billion into taking the production of the Ranger vehicle to 167 000 per year. The plant at Silverton, Pretoria, also makes the Everest sports utility vehicle. UD Trucks, a part of the Volvo group, announced in 2017 that they will assemble the Croner heavy commercial vehicle at Rosslyn. Gauteng is also home to a strong automotive components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese truck manufacturer FAW, which owns an assembly plant in Isando. Bejing Automotive Works (BAW) assembles taxis at Springs and has committed (with its partners) to a new investment of R250-million. ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Automotive Industry Export Council: www.aiec.co.za Automotive Supplier Park: www.supplierpark.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za Armoured cars are also produced in Gauteng. DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. The Automotive Industry Development Centre (AIDC), the City of Tshwane and the Tshwane Economic Development Agency (TEDA) are collaborating on a strategic project to boost the sector with a focus on infrastructure. Incentives are available to firms and investors within the automotive industry. The value of incentives provided through the National Department of Trade and Industry amounts to around R5.9-million. These incentives are a key factor in encouraging firms within the automotive industry to upgrade or expand their facilities. The Department of Trade and Industry, working together with the National Association of Automobile Manufacturers of South Africa set targets for 2035 to increase production to 1% of world volumes (which would mean 1.4-million more vehicles made in SA), increasing local content and doubling employment and blackowned businesses in the sector. GAUTENG BUSINESS 2018/19 56

Food and beverages Joburg Market is Africa’s biggest. As a densely populated, urban province, Gauteng is South Africa’s biggest market. By volume and value, the Joburg Market is the biggest in Africa. There are 55 cold rooms that can accommodate 4 561 pallets of fresh produce at any one time. An average of 10 000 buyers congregate daily on the market’s 65 000m² of trading space. Investment opportunities in this lively sector include: production of ground-nuts, sunflowers, cotton and sorghum; soya beans, rooibos, beverages, fruit and vegetables; essential oil extraction from herbs and indigenous plants; expanding the exotic meat market (kudu, ostrich and springbok) locally and globally; packaging of agri-processed goods; and small business opportunities within the brewing industry. The Green Hub in the West Rand District Municipality will promote the growth of sustainable, green industries, research and development of organic food production, health foods and natural remedies. More than half of the companies operating in the food and beverage sector in South Africa are in Gauteng, including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI and Astral. There are approximately 4 000 food processing companies in the province, employing more than 100 000 people. South African Breweries is spending R2.8-billion on expanding two of its three Gauteng breweries. Heineken’s brewery at Sedibeng has already been expanded once since it opened in 2010. Nestlé operates four manufacturing plants in the province and has invested heavily in increasing production volumes over the last ONLINE RESOURCES Food Advisory Consumer Services: www.foodfacts.org.za National Agricultural Marketing Council: www.namc.co.za FoodBev SETA: www.foodbev.co.za South African Association for Food Science and Technology: www.saafost.org.za SECTOR INSIGHTS OVERVIEW South African Breweries is spending R2.8-billion on expansion. three years. Tiger Brands runs six plants in Germiston that produce a range of meat products, and the establishment of a new tomato sauce plant and pasta plant rank among the company’s recent investments in the province. McCain Foods, located in Springs, produces frozen vegetables for the Gauteng market. Although the South African poultry business took a knock because of the relaxation of import duties, the South African consumer still eats a lot of chicken. Earlybird Farm, one of Astral’s operations, processes 800 tons of chicken per day at its two factories in Olifantsfontein. RCL operates 18 farms and two feed mills in Gauteng alone. Daybreak Farms, an AFGRI operation in Springs, produces about 650 000 broilers every week. Several beverages in AVI’s portfolio (including Ciro) are produced at the group’s Kempton Park facilities. United National Breweries produces Umqomboti in northern Gauteng. Key players in the industry in South Africa include South Africa Breweries (SAB) (malt beer), United National Breweries (sorghum beer), Distell (spirits and flavoured alcoholic beverages, or FABs) and Brandhouse (malt beer, spirits and FABs). 57 GAUTENG BUSINESS 2018/19